Conventional loan on rental property purchased by SDIRA LLC?

[Tina Swanson]

Hello,

Since a rental property purchased by the SDIRA LLC cannot be owner occupied, can you still get a conventional or FHA loan on it? Or does it have to be a commercial loan?

[Jeffrey Dixon]

Quote from @Tina Swanson:

Hello,

Since a rental property purchased by the SDIRA LLC cannot be owner occupied, can you still get a conventional or FHA loan on it? Or does it have to be a commercial loan?

It must be a non-recourse loan, made to the IRA with no personal guarantees from you or close family members. That is all the IRS allows an IRA or Solo 401k to use.