Loan Programs
Solo 401(k) Financing
Powerful, often UDFI-exempt, leveraged real estate inside your Solo 401(k).
Solo 401(k) plans are a powerful vehicle for leveraged real estate — and often the most tax-efficient, thanks to the real-property exception to UDFI.
The UDFI advantage
Qualified plans generally qualify for the IRC §514(c)(9) exception, so leveraged real estate held in a Solo 401(k) is typically exempt from UDFI — the tax that can apply to a leveraged IRA. For many investors that is the deciding factor. See how the exception works →
Same non-recourse structure
You get the same protections: no personal guarantee, up to 70% LTV, and underwriting based on the property and its cash flow rather than your personal credit.
Often simpler to administer
When you act as trustee of your own plan, day-to-day administration is frequently more straightforward than a custodied IRA. Whether the exception applies to your plan and transaction depends on the specifics — confirm with your CPA.
Model your Solo 401(k) scenario
Run price, rent, and terms through our underwriting math to see your loan, DSCR, cash to close, and a five-year projection.
The Loan Planner is the most complete of our calculators -- it turns a property's price, rent, and operating costs into the numbers that actually decide a non-recourse loan: loan amount, LTV, DSCR, monthly PITIA, cash to close, required reserves, and a five-year equity-and-cash-flow projection.
It uses the same 70% LTV / 1.25 DSCR baseline and current Treasury-indexed pricing our officers use, so the estimates you see are grounded in real guidelines rather than guesswork.
Run your numbers in two minutes. Honest estimates -- then apply.
We will remember your info on this device to save you time. Not you? Clear my info
How it works
- Enter the purchase price, down-payment %, and estimated monthly rent.
- Add carrying costs -- taxes, insurance, HOA, closing %, and an expense allowance.
- Pick a term (15 to 30 years) and the Treasury index that prices your rate.
- Run the scenario to see your full deal, including a year-by-year projection.
Why it matters
Investment-property lending lives or dies on debt-service coverage and leverage, not on personal income. Modeling the deal before you commit shows whether the rent supports the payment at our 1.25 DSCR minimum and whether your down payment keeps you under 70% LTV.
It also shows how much cash you truly need at closing, including reserves, and the projection helps you see past year one -- how appreciation and rent growth build equity and cash flow over a hold.
How to read your result
DSCR is rent divided by PITIA; at or above 1.25 you are inside guideline, and below it is not a no -- it invites an exception or a larger down payment. LTV is your loan divided by price; staying at or under 70% keeps you in the standard lane.
Cash to close blends your down payment, closing costs, and points; six-month reserves are held separately. The projection assumes the appreciation and rent-growth rates you enter, so adjust them to stress-test. All figures are estimates, not a commitment to lend.
Keep going
Frequently asked questions
What is PITIA?
How is my rate estimated?
What if my DSCR comes out below 1.25?
Why does it ask for reserves?
Are the projections guaranteed?
Estimates only -- not a commitment to lend; subject to full underwriting.
Frequently asked questions
Is a Solo 401(k) really exempt from UDFI?
Qualified plans generally qualify for the IRC section 514(c)(9) real-property exception, so leveraged real estate is typically exempt. Whether it applies to your plan depends on the specifics; confirm with your CPA.
Is the loan still non-recourse?
Yes — the same non-recourse structure applies, with no personal guarantee and up to 70% LTV.
Can I be my own trustee?
Many Solo 401(k) owners act as trustee of their plan, which can simplify administration. Your plan documents govern the specifics.
Ready to see where you stand?
Estimates and guidelines only — not a commitment to lend; all loans subject to full underwriting. Business-purpose / investment-property financing only. Educational information, not legal or tax advice.