My family and I currently live in a townhome. We are interested in buying a single family home which will be our primary residence. We would like to keep this home and rent it out as an investment property. I have read that you can use funds from a self directed IRA to purchase a home as an investment property. What I want to know is- is it possible to purchase the new home with our own funds, but then begin paying the mortgage on THIS place with the IRA? Do I have to buy this house from myself in order to do that?
What about borrowing against either a self-directed IRA or against my 401k for the purchase of the new primary residence, how does that work? My understanding is that I can borrow (up to $50,000) against a 401k for a home purchase, but I must pay it back (with interest) within 5 years or possibly 15 years depending on ... what?