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If you’re looking for a simple way to diversify your retirement portfolio an IRA loan might be a good fit. Eligible borrowers can use their self-directed IRA to expand investment options beyond traditional avenues into real estate.
Find Out if You Pre-qualify for an IRA Loan.
SouthStar Bank Offers an Easy Path to Self-Directed IRA Loans
At SouthStar Bank, there is no minimum or maximum loan amount. Your loan is in the name of your IRA, and the amount you borrow depends on the value of your real estate investment.
Single-family homes and condominiums (2-4 unit) are eligible for non-recourse IRA loans with SouthStar Bank. Keep in mind, the property must generate sufficient net operating income/cash flow that exceeds debt payments.
Eligible borrowers will need to have a portion of the purchase price vested in a self-directed IRA. The actual down payment for your non-recourse IRA loan will depend on the property you purchase, condition, and expected cash flow. SouthStar Bank typically requires a minimum down payment of 40%.
SouthStar Bank offers competitive interest rates on self-directed IRA loans. You’ll find adjustable rates to meet your investment needs. If you’re worried about how your credit score will affect your application on an IRA loan, relax.
Unlike traditional loans, you can qualify for an IRA loan, even if your credit score isn’t perfect. How is this possible? Simple. Your credit isn’t a determining factor because the loan isn’t made in your name. Instead, it’s made in the name of your self-directed IRA.
One of the best features of a self-directed IRA loan with SouthStar Bank is that it is considered non-recourse, meaning your remaining assets aren’t at risk. The loan is made directly to the IRA, not to you as the account holder. Your credit history isn’t a factor, yet you’re still able to purchase an income-producing property.
A non-recourse IRA loan lets you invest in real estate without jeopardizing your finances. If you default on your loan, you’re not personally responsible for repaying the loan. And, the remaining IRA funds and other assets you own are protected.
If you don’t already have a self-directed IRA, you can open one or transfer an IRA into a self-directed IRA. When you convert a standard brokerage-managed IRA to a self-directed IRA account, you open the door to a more diverse range of investing options. You also can grow your retirement fund by getting higher returns through investing in real estate.
At SouthStar Bank, we match you with lending terms that fit your finances. We offer adjustable-rate lending based on a 30-year term, and you’ll never have to worry about a prepayment penalty. This is your loan, and you can repay the funds when it makes sense for your finances.
Best of all, the lending team will never ask you to settle for a one-size-fits-all solution like other banks. To guide you toward the right lending solution to meet your financial needs, we want to get to know you. Contact SouthStar Bank’s IRA Loan Specialist to discuss your options.
Gary Mobbs
Senior Vice President/Area Manager/IRA Loan Director
830.672.1081 | 830.857.1418
gary.mobbs@southstarbank.com
NMLS# 586586
Contact Us
Please complete the form below and our IRA Lending Specialist will be in touch.
Competitive Interest Rates
SouthStar Bank offers competitive interest rates on self-directed IRA loans. You’ll find adjustable rates to meet your investment needs. If you’re worried about how your credit score will affect your application on an IRA loan, relax.
Unlike traditional loans, you can qualify for an IRA loan, even if your credit score isn’t perfect. How is this possible? Simple. Your credit isn’t a determining factor because the loan isn’t made in your name. Instead, it’s made in the name of your self-directed IRA.
Limit Your Liability
One of the best features of a self-directed IRA loan with SouthStar Bank is that it is considered non-recourse, meaning your remaining assets aren’t at risk. The loan is made directly to the IRA, not to you as the account holder. Your credit history isn’t a factor, yet you’re still able to purchase an income-producing property.
A non-recourse IRA loan lets you invest in real estate without jeopardizing your finances. If you default on your loan, you’re not personally responsible for repaying the loan. And, the remaining IRA funds and other assets you own are protected.
Grow Your Retirement Fund by Investing in Real Estate
If you don’t already have a self-directed IRA, you can open one or transfer an IRA into a self-directed IRA. When you convert a standard brokerage-managed IRA to a self-directed IRA account, you open the door to a more diverse range of investing options. You also can grow your retirement fund by getting higher returns through investing in real estate.
How Does an IRA Loan Work?
You’ll need a self-directed IRA account to get started. If you don’t already have a self-directed IRA, opening an account or converting an existing brokerage-managed IRA to a self-directed IRA account is simple. An IRA custodian can walk you through the process.
When you apply for the loan, it’s made directly to the IRA (not to you). IRS rules prohibit the use of IRA loan funds for certain investments, such as life insurance or collectibles. But you can use non-recourse IRA loan proceeds to purchase income-producing investment property. Profits are reinvested in the IRA, while remaining IRA account funds and other assets owned by the account holder are protected in the event of a real estate loan default.
How Does an IRA Loan Work?
You’ll need a self-directed IRA account to get started. If you don’t already have a self-directed IRA, opening an account or converting an existing brokerage-managed IRA to a self-directed IRA account is simple. An IRA custodian can walk you through the process.
When you apply for the loan, it’s made directly to the IRA (not to you). IRS rules prohibit the use of IRA loan funds for certain investments, such as life insurance or collectibles. But you can use non-recourse IRA loan proceeds to purchase income-producing investment property. Profits are reinvested in the IRA, while remaining IRA account funds and other assets owned by the account holder are protected in the event of a real estate loan default.
Why Use a Self-Directed IRA for Real Estate Investing?
While traditional and Roth IRAs are an excellent way to help you save for the future, your investment options are often limited to stocks, CDs, bonds, and mutual funds. A self-directed IRA is different. Rather than restricting you to traditional investments, a self-directed IRA allows you to expand your options to real estate, joint ventures, tax lien certificates, and more.
With a self-directed IRA, you have the freedom to explore these alternative investments and the chance to grow your retirement portfolio – without taking unnecessary risk. The investments you purchase with loan proceeds can produce the income needed to reach your retirement savings goals.
In addition to increased portfolio diversification, using a self-directed IRA to purchase real estate can make sense for your personal situation when you consider that:
- You’ll be investing in physical property instead of a volatile stock market
- Real estate can give you better returns over the long-term
- Profits are reinvested in your IRA to grow your earnings further
- Credit review is more flexible than traditional loans
- Traditional loan mortgage requirements don’t apply
- You can safely invest without jeopardizing your IRA because the loan is considered ‘non-recourse’
What Is a Non-Recourse Loan?
When you borrow against your IRA, it is considered a non-recourse loan. This means you are not personally liable should you default on the loan. The only “recourse” the lender may use to collect on the default is the collateral. While you could lose your collateral, your remaining assets are protected.
When you borrow against your IRA, it is considered a non-recourse loan. This means you are not personally liable should you default on the loan. The only “recourse” the lender may use to collect on the default is the collateral. While you could lose your collateral, your remaining assets are protected.
Since everyone’s situation is different, speak with a SouthStar Bank lending expert to help determine if a non-recourse IRA loan is right for you.
Apply for a Self-Directed IRA Loan
Are you ready to maximize your retirement investments? A non-recourse IRA loan might be a good fit. Find out when you speak with a local lending expert at SouthStar Bank. A qualified professional can review the opportunities available through self-directed IRA loans based on your specific situation.
Contact our IRA Lending Specialist today!
Gary Mobbs
Senior Vice President/Area Manager/IRA Loan Director
830.672.1081 | 830.857.1418
gary.mobbs@southstarbank.com
NMLS# 586586
Apply for a Self-Directed IRA Loan
Are you ready to maximize your retirement investments? A non-recourse IRA loan might be a good fit. Find out when you speak with a local lending expert at SouthStar Bank. A qualified professional can review the opportunities available through self-directed IRA loans based on your specific situation.
Contact our IRA Lending Specialist today!
Gary Mobbs
Senior Vice President/Area Manager/IRA Loan Director
830.672.1081 | 830.857.1418
gary.mobbs@southstarbank.com
NMLS# 586586
FAQs
Just send us the address! We’re happy to review the property and provide quick pre-approval if qualified.
If you already have an account at any retirement provider (including an old 401(k) or another employer plan), you can transfer that account to a self-directed IRA. The process is simple and there are no tax consequences for transferring your account, but there are IRS rules to follow. An IRA custodian can assist you with your transfer.
All expenses associated with the property owned by your IRA must come from your IRA account. These types of expenses could include, but are not limited to: repairs, contractors, HOA, property taxes & insurance.
Yes, but all funds must be distributed back into your IRA.
Yes, as long as they are income producing.
Yes, however, the down payment will be higher.
