Can you use SDIRA to fund down payment on FHA loan?

[Peter Haberz]

Hi All,

Just starting out here. I live in sunny San Diego and would be interested if anyone knows if you could use a self directed IRA to fund the down-payment of an FHA loan for a multifamily home (2-4 units).

Thanks,

Peter

[Brian Eastman]

@Peter Haberz

No, you may not do that.  

A self-directed IRA may purchase a property using a mortgage, but the mortgage must be non-recourse. That means there is no personal guarantee from you and you are not qualifying for the loan - the property is.

There are specialty lenders that do such loans, including North American Savings Bank and First Western Federal Savings.