Self Directed IRA and FHA

3 Replies

@Etan Frankel

When you say "my first home", that sounds as if you intend to live in the property. If so, then your self-directed IRA cannot be used in any way to participate in the purchase transaction as that would constitute self-dealing.

If the IRA is purchasing the home purely as an IRA investment, then the loan must be non-recourse, meaning no personal guarantee from you. In that case, FHA is not an option.

@Etan Frankel In addition to what @Brian Eastman said, if you purchase a home via SDIRA with debt financing, your IRA will be subject to UBIT (unrelated business income tax). Look into that and consult with your CPA, prior to making this purchase.