A non-recourse loan is a type of loan where the IRA account holder is not personally liable for repaying any outstanding balance on the loan. Instead, the loan is in the name of the Self-Directed IRA, not the account holder, and it is secured only by collateral, typically the property being purchased. A non-recourse loan provides many Self-Directed IRA account holders a way to further diversify their portfolio with real estate.
Our lending program gives you the opportunity to invest in a variety of property types including residential, commercial, industrial, and multi-family homes. Visit How To Invest in Real Estate with a Self-Directed IRA Non-Recourse Loan for further information regarding our lending program and non-recourse loan options.
What is the processing time for a non-recourse loan?
The processing time is typically 3 - 6 weeks from application to closing, depending on the title work. The approval for the loan takes place within 7 days.
How does Madison Trust's Lending Program work?
Madison Trust’s lending program combines our expertise with Self-Directed IRAs, unmatched client support, and fixed rates so you can seamlessly invest in the property of your choice.
The details of our lending program are as follows:
• Loan Amounts: $100,000 - $499,999 (will consider larger requests)
• Loan Term: 3 - 5 years
• Amortization: Up to 25 years
• Loan Rate: 7.50% ±
• Loan-to-Value: 50% - 70%
• Debt Service Coverage Ratio: 1.25% +
What are fees for a non-recourse loan?
Below is an approximation of the fees for a non-recourse loan.
• Origination Fee: 2%
• Closing Costs (title, filings, etc.): Typically between $2,500 - $5,000