Buying a home with Roth Solo 401k: Important things to know - Buyer Investor Match

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Arranging for down payment is the biggest challenge for most people wanting to realize their homeownership dream. It’s an important threshold that you’ve got to cross in order to get the best financing deal for your home purchase.

Here at Buyer Investor Match, we work with many self-employed people who can’t qualify for a mortgage from a conventional bank simply because they don’t have documents to prove their income. When we help these individuals to get financing for buying a home without any credit check or income verification, the only criteria we require them to fulfil is a minimum 15% down payment. We know from our experience of working with hundreds of self-employed people that someone who has arranged for that much down payment is financially capable of keeping up with his or her monthly mortgage payments.

Many of these self-employed people are so disciplined that they have been investing in a Roth Solo 401k investment plan for years. If you too have invested in a Roth Solo 401K plan, you can easily arrange for a down payment on your home. Here is what you need to know about buying a home with Roth Solo 401k:

Who is Roth Solo 401k for?

You need to be a self-employed professional or own an owner-only business in order to be eligible for investing in Solo 401k plan with a Roth component. It’s a self-sponsored plan and the best advantage is that it allows you to investment your retirement funds in a wide variety of assets including real estate.

Let’s say for example, you started funding your Roth Solo 401k with a certain dollar amount five years ago and now you are more than 591/2 years old. Any ‘qualified’ distribution from your Roth Solo 401k will be tax-free. It’s important to understand what qualified distributions are. For a ‘qualified’ distribution,

  • You should be at least 59 1/2 years old and
  • Your Roth Solo 401k contribution plan should be at least five-year-old.

Some other criteria including disability and death are also included in the definition of a ‘qualified’ distribution.

Important things to consider when buying a home with Roth Solo 401K

You can either buy a home 100% with 401k or combine it with a non-recourse loan. A non-recourse loan requires an asset to be put as collateral. For example, a mortgage from a conventional lender such as bank is a non-recourse loan.

If you haven’t started investing in a Roth 401k, you should seriously consider this. Here are a few advantages of this retirement plan:

  • As of 2018, you can contribute an after-tax amount of up to $18,500. If you are 50 or order by the end of the year, your contribution limit goes up to $24,500.
  • Need money to set up a business while you are contributing to your Roth Solo 401k account? Well, you don’t need to go to a bank or a private lender as long as the amount of money you need is up to $50,000. You can borrow that much for any purpose against your Roth Solo 401k plan at a very low interest rate.
  • As the owner of a small business, you should be taking the money out of your business income and contributing it to your Roth Solo 401k account, right? A great feature of Roth Solo 401k is that you can deduct the cost of the plan such as maintenance fee from your business’s taxable income.

In conclusion

At our free training sessions, we encourage home buyers to explore these options to arrange for down payment. If you are interested in buying a home without no credit check or income verification, we can help you to realize your home through owner financing. Click the button below to set an appointment with us using our online scheduler…

3 Steps to Homeownership

With No Credit Check or Income Verification
1
SCHEDULE : · Schedule a time to meet with us and learn how our proven system works.
2
PICK : · You pick any home you want, even a brand new home.
3
RECEIVE : · Get the keys to your dream home and a deed in your name with as little as 15% down.
Araceli and her family relocated from California. Self employed and unable to qualify for a loan, they used our program to get owner financing on a brand new home.
Araceli

Three Steps to Homeownership

SCHEDULE : Schedule a time to meet with us and learn how our proven system works.

PICK : You pick any home you want, even a brand new home.

RECEIVE : Get the keys to your dream home and a deed in your name with as little as 15% down.