Does standard non-recourse Freddie Mac Commercial loan work for IRA accounts?

[Zehua Zhou]

I understand that IRA loans need to be non-recourse. I talked to a commerical RE lender who does the Freddie Mac Commercial loans and his sample loan doc has the following language:

Non-recourse to Borrower and Guarantor(s), except for standard Freddie Mac recourse carve-outs.

The borrower is the LLC, and the Guarantor would be me. It explicitly stated that the guarantor would be non-recourse to the loan, "except for standard Freddie Mac recourse carve-outs." The lender explained that the standard carve-outs include committing criminal activities on the property, failing to pay property tax and failing to purchase insurance for the property. In those conditions, it will become recourse to the guarantor.

Can anyone please let me know in this case, will this loan still qualify for a IRA loan?

[Doug Smith]

I'm struggling to understand the part in the post that says "guarantor would be non-recourse to the loan". By definition, recourse is where a lender has "recourse" against a party or guarantor on a loan. I'm not sure that's correct. I was not aware that Freddie allowed non-recourse deals. Recourse busts your IRA. Who is your Third Party Administrator. I would run this specific scenario by them, but based on the limited info above, I would say no.