HELOC within a Self Directed 401k?

[Rick Hughey]

If I own a home within my self-directed 401k, is it possible to borrow against the equity in that home to purchase another property? Thanks!

[Brian Eastman]

@Rick Hughey

Yes, the 401k may borrow for the acquisition of real estate, but no, it would not exactly be a HELOC.

A 401k must use non-recourse financing and only a limited number of lenders do that. The primaries are:

First Western Federal Savings

North American Savings Bank

(BP prefers we not include links, so google them)

They will essentially create a portfolio loan, where you can cross collateralize an existing wholly owned property towards the financing of a 2nd property.