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Can my self-directed IRA or 401K get a mortgage on a piece of property?

April 26, 2017IRA mortgage piece Property self-directed

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Can my self-directed IRA or 401K get a mortgage on a piece of property?

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Yes. The mortgage would need to be a non-recourse type of loan, meaning that if your IRA fails to make the payments, the only recourse the lending institution has is the property itself. Also, be aware that if your IRA obtains a loan, unrelated debt financing income tax will apply.