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What Is a Non-Recourse Loan?
The compliant way to use leverage inside a retirement account.
A non-recourse loan is secured only by the property itself. If the loan ever defaults, the lender’s sole remedy is the collateral — there is no personal guarantee and no claim against you or your retirement account beyond that property.
Why retirement accounts require it
The IRS prohibits you from personally guaranteeing a loan made to your IRA or Solo 401(k). That single rule is why an ordinary mortgage can’t be used inside a retirement account — a conventional loan needs your personal signature and assets behind it. A non-recourse loan removes the personal guarantee entirely, which is exactly what makes leverage compliant inside a self-directed account.
How approval works without a personal guarantee
With no personal guarantee, the property carries the loan. We underwrite the asset and its cash flow rather than your personal income or credit score. The decisive number is DSCR — the property’s rent relative to its payment. Meet our 1.25 baseline at up to 70% LTV and the path is clean; come in below it and it’s still a conversation, because exceptions get reviewed.
Non-recourse vs a conventional mortgage
- Collateral: the property only — not your personal assets.
- Approval basis: property cash flow and DSCR, not personal credit.
- Who can borrow: IRAs, Solo 401(k)s, and entities — structures conventional loans don’t serve.
- Leverage: up to 70% LTV on qualifying investment property.
Check your eligibility
See where your IRA, SEP, or Solo 401(k) stands for a non-recourse investment-property loan -- in under two minutes.
The Check Eligibility tool gives self-directed retirement investors a fast, honest read on whether a non-recourse loan fits their account and their target property. A non-recourse loan is what lets an IRA or Solo 401(k) borrow without the account holder personally guaranteeing the debt -- a requirement when retirement funds are the borrower.
Answer a few questions about your account type, balance, and the property, and you will get a plain-language verdict plus a likely loan range, with a clear next step. Nothing here is a credit decision -- it is a starting point built on the same guidelines our officers use.
See where you stand before you talk to anyone. Every result points to a next step.
We will remember your info on this device to save you time. Not you? Clear my info
How it works
- Tell us your account type (IRA / SEP or Solo 401(k)) and balance band.
- Describe the property -- type, transaction, state, and estimated value.
- Confirm it is an investment (non-owner-occupied) property, which non-recourse loans require.
- Get an instant read plus a likely loan range based on our 70% LTV baseline.
Why it matters
For retirement-funded real estate, the loan structure matters as much as the property. Because the IRA or 401(k) -- not you -- is the borrower, lenders look to the asset and the account rather than your personal income.
Knowing early whether your account type, balance, and property line up with non-recourse guidelines saves weeks and lets you shop with realistic numbers. It also surfaces tax considerations like UBIT / UDFI, which differ between IRAs and Solo 401(k)s.
How to read your result
Likely eligible means your inputs fit our standard guidelines and an officer can move quickly. Likely a conversation or Conditional does not mean no -- it flags something (a smaller balance, a restricted property type, or owner-occupied use) that a specialist should review.
The likely loan range is an estimate from your property value against our 70% maximum LTV; your actual amount depends on rent, reserves, and full underwriting. Every result routes to Apply because borderline files still get a human review.
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Frequently asked questions
Do I need to personally qualify for a non-recourse loan?
Which account types can use this tool?
Does the property have to be an investment property?
Is the result a loan approval?
My balance is under $100k -- am I out?
Estimates only -- not a commitment to lend; subject to full underwriting.
Common questions
Does a non-recourse loan affect my personal credit?
No. There is no personal guarantee, so the loan is not underwritten against your personal credit and does not put your personal assets at risk.
Can I personally co-sign to get a better rate?
No — a personal guarantee would violate the rules that make the loan eligible for a retirement account. The structure is non-recourse by design.
What drives approval then?
The property and its cash flow. We look for at least a 1.25 DSCR at up to 70% LTV.
See where you stand in two minutes
Educational information only — not legal, tax, or financial advice. Confirm details with your own CPA, attorney, and a Non Recourse Loan specialist.