A self-directed IRA may obtain financing through private lenders, financial institutions, or other financing sources that offer non-recourse loans.

Non-recourse financing means the lender's recovery is generally limited to the collateral securing the loan. The IRA owner and other disqualified persons cannot personally guarantee the loan or pledge personal assets as collateral.

Financing may also result in Unrelated Debt-Financed Income (UDFI), which can be subject to Unrelated Business Income Tax (UBIT).

Consult a qualified tax professional before obtaining financing for an IRA-owned property.