I have created my self directed 401k and i want to know what are the prevailing rates for non recourse loans. I got some list of lenders from some website like this:
But are there any more banks which i should consider?
I am planning to buy/ hold the property for long term using my 401k so i can use the rent for my retirement purpose.
Also what are the pros and cons of non recourse loans for single family properties using 401k for long term.
Thanks for your opinions,
Any help BIgger Pocketers !
Rama, to find out the terms that each lender offers please read the detailed description at the link you referenced and for additional info you can contact each lender and inquire with them directly (terms are subject to change).
I compiled that list over many years and I believe it is comprehensive. There is one bank that is in the pipeline who offers this program but they are not quite ready to offer it to the public, as soon as they are - we will add them to the list.
If you find another bank offering non-recourse financing please let me know and we'll add them to the list.
You are asking about pros and cons as if you were trying to compare it with some other alternative. But there is none, you must use non-recourse financing in your IRA. The only other alternate is not to use financing and pay cash for the property.
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