Borrower wants to refinance SFR that is in a SDIRA

[Darryl Dahlen]

This is a new one for me so I'm looking for some advice. I have a client with a high-end SFR that was bought this year through a SDIRA.
It's an investment property that has a zero balance on it. My client would like to take a loan against the property (through their IRA) as a cash-out refinance, but the few lenders I've talked to don't know much about the holding entity so are skittish.
My question is are there lenders that specialize in these types of loans??

[Jon Holdman]

There are only a few lenders who will do this. We have a local bank here, 1st Bank, but they're only in a few states around here. Once upon a time I found one company that was nationwide. Based somewhere in MO, IIRC, but I can't recall the name. Google for "IRA loans" and I think you'll find it.

These loans must be fully non-recourse. No personal guarantees or anything. Last I checked, max LTVs were 65%. When I spoke to the guy at 1st Bank, he said you would need to hold it a year to do a cash out refi based on a new value, but they could do one immediately based on the purchase price.