Self-Directed IRA Loans
At Merchant’s Mortgage, we now have a portfolio product for investors looking to do rehab property loans utilizing their self-directed IRA. The loan is non-recourse to the individual borrower. The individual borrower is underwritten, but is not personally signing on the loan, so as to meet self-directed IRA requirements (check with your IRA advisor regarding tax-free or tax-deferred benefits).
We can close loans quickly (typically within one week or less), have flexible income underwriting requirements, lend money towards property repairs, and do not have conventional limits on the number of properties owned (although if you are looking to hold and then refinance the property into a conventional loan, you would need to meet conventional loans requirements in that case).
General Terms of the Non-Recourse to Individual Self-Directed IRA Loan:
- 65 to 75 percent of purchase price plus 65 to 75 percent of repairs (subject to after repair value appraisal)
- 10 to 11 percent Fixed Interest Rate, Interest Only Monthly Payment, No Prepayment Penalty
- 2.5 to 3 Percent Origination Fee
- 6 Month Loan with Automatic 6 Month Extension. Extension Fee Beginning in Month 7 is the Loan
- Amount Times .0033 Per Month and Any Extension Fees are Added to Loan Pay Off
- Generally, the Individual Will Have 680+ Credit Scores
We look forward to working with you. For more information and pricing, Contact Us.