Posted by Tim (Atlanta) on May 11, 2000 at 14:59:09:
Using your self-directed funds to put a down payment on a property is possible. The problem would be getting the mortgage company to understand the situation. I also don’t think you can personally guarantee the mortgage, so the mortgage company would have to get a larger down payment than 10%. Also, mortgage payments and other expenses of the property would come from your IRA. If this is not a money-making opportunity, I don’t see why you would want to do it.
Now as for using the property yourself, that is NOT allowed. You cannot occupy or use the property for your own means. The IRS frowns on that. You also cannot hold title in your name, it must be in the name of your IRA. You also cannot buy or sell any property that you own or have owned to the IRA.
Hope this helps.