Mortgage for SD-IRA - is it possible without a dry close?

[Lisa Foreman]

Hey BP,

My friend and I purchased a townhouse from our self-directed IRA's. The property is in Virginia. We applied for a mortgage through NASB. When it came time to actually buy the property we ran into a road block. We could not officially sign the papers until NASB turned over the money, but NASB would not turn over the money until we had signed the papers.

Fortunately, we were able to get a short-term loan for the balance, officially buy the property, get the NASB mortgage, and then pay the short term loan back within a very short time frame.

Now I want to buy another property with another friend using SD-IRA's and I don't want to go through the same process. How do I work around this issue? Should I be shopping for a different title company or a different lender? I heard NASB is the most experienced for SD-IRA's and I like working with them in every other aspect. Has anyone out there successfully done a 'dry close' without a short hard money loan?

Thank you in advance for any advice you have.