Solo 401k Nonrecourse loans

[Tanya Brown]

Where are people finding non-recourse loans to fund a buy and hold rental property with their Solo401k? I found 2 lenders who specialize in it but rates are almost at 7% I can get 4.5% from credit union and 5.75% from another bank, but they are all recourse loans. One lender even said that there aren't many banks doing it. So how are people using their Solo401k to finance and finding reasonable rates, since you have to use a nonrecourse loan? Thanks!

[Dmitriy Fomichenko]

@Tanya Brown,

There are not too many lenders who specialize in this, I put together a list that I gathered over the years:

https://www.biggerpockets.com/member-blogs/2810/50...

The loan from credit union or other bank is out of question, conventional loan will not work with 401k. Yes, the rates for non-recourse loans would be higher, but that is because such loans are higher risk for the lender since there is no personal guarantee. 

If property qualifies - it is not hard to get a non-recourse loan from one of the lenders who specialize in this.