Solo 401k Eligible vs. Ineligible Properties using a non-recourse loan
We have found that when using a non-recourse loan for purchasing Solo 401k real estate, the few banks that currently make up the non-recourse loan market have the following criteria:
Eligible properties with a non-recourse loan
-Single Family Residential
-Warrantable Condo's (100% complete, 33% or more sold, and HOA turned over by developer)
-PUDs/Town homes
-Duplexes
-4-Plexes
-Multifamily (5 or more units)
Ineligible properties if using a non-recourse loan
-Residential with large acreage
-Raw land
-Farms
-Manufactured or log homes
-Non-warrantable condos
-Hotels, condo-hotels
-Co-ops, Timeshares
-Senior or assisted living facilities
-Non-franchise restaurants
-Entertainment properties
-Mini-storage
An alternative to obtaining Self-Directed Solo 401k non-recourse loan financing from a bank is through a private hard-money lender that in which case would most likely not place the above restrictions.
Additional Information
Solo 401k Real Estate
Non-Recourse Loan
Tenants-in-Common
Non-Recourse Loan Criteria
Eligible properties with a non-recourse loan
-Single Family Residential
-Warrantable Condo's (100% complete, 33% or more sold, and HOA turned over by developer)
-PUDs/Town homes
-Duplexes
-4-Plexes
-Multifamily (5 or more units)
Ineligible properties if using a non-recourse loan
-Residential with large acreage
-Raw land
-Farms
-Manufactured or log homes
-Non-warrantable condos
-Hotels, condo-hotels
-Co-ops, Timeshares
-Senior or assisted living facilities
-Non-franchise restaurants
-Entertainment properties
-Mini-storage
An alternative to obtaining Self-Directed Solo 401k non-recourse loan financing from a bank is through a private hard-money lender that in which case would most likely not place the above restrictions.
Additional Information
Solo 401k Real Estate
Non-Recourse Loan
Tenants-in-Common
Non-Recourse Loan Criteria