Can I get an Investment Property Loan from a Self Directed IRA?

When you start looking for your next investment property, you’ll probably find that pinning down an investment property loan is not as easy as it once was .  There are many companies funding loans for investment properties and you can certainly get approved, but you need to take note of the current rules of the game .

The days of no cash down or low money down options are a thing of the past.   You’ll be asked to put 20%-30% down and you will be required to have excellent credit.  If your credit is good , but not fantastic , then expect to put even more cash down.  Is it still possible to get an investment property loan without a down payment ?  Actually, yes, but these loans are usually obtained from a commercial lender that will accept cross collateral (a lien on an additional property that you already own) in lieu of a down payment.

Your best choice will be to seek out a mortgage broker who specializes in investment property loans in your area.  They will typically know of all the lenders that offer funding choices that will fit your requirements , and will be able to assemble the best deal for your situation .  

In addition to knowing the best financing options, they may also have other clients that both purchase investment property and fund private investment property loans themselves.  Sophisticated lenders will often have some private lenders in their pocket to contact when traditional loan options are not available .

Private lenders regularly have capital on deposit in a self directed IRA account specifically for financing private notes for individual investors that are unable to get a conventional investment property loan.   Depending on the interest rate they request , this could be a win-win opportunity for everyone involved, so stay open-minded.

Be sure to ask around, search the web , and choose the best options for you.  Don’t become frustrated if you are unable to find the perfect solution right away.  The best option for you may exist in a single relationship that is right around the corner .  Do your research , know your boundaries , and take it at your own pace.

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