Unfortunately lenders don’t like to lend to entities only people. As you stated, you can transfer the title after you close to your LLC. Some people are afraid of the due on sale clause. Most lenders sell your mortgage on the secondary market. They will most likely not scan through each mortgage to see who transferred a title. Usually as long as the payments are being made on time, they don’t care. Remember lenders make their money on loans that are performing. Do you really think they want to call the loan due especially if it is performing? Suppose they enforce the due on sale clause. This means you will have to refinance to pay them. Would this be a problem for you? It would if you have a conforming loan. Look into a non-conforming loan with little or no seasoning so that if you want or have to refinance there will be no problems. Of course verify this. This was told to me by my local mortgage broker. Get to know one and establish a relationship and pick their brain. Let me know what you find out.
Rob
To Buy Investment Property with LLC - Posted by Peter Weisner
Posted by Peter Weisner on September 07, 2004 at 15:00:38:
I would like to buy an investment property. I would like the property to be held in the name of the LLC. The problem is getting the mortgage. The mortgage companies will not give a mortgage to an LLC. That’s the way it is a New York.
Do you know a way to solve this problem?
Do you know a lender who offers a regular, conventional mortgage for a single-family house with the Title held by an LLC?
I am looking for a solution other than transferring the property into the LLC after I buy in my personal name.
Re: To Buy Investment Property with LLC - Posted by Art (MD)
Posted by Art (MD) on September 11, 2004 at 22:55:33:
Contact Washington Mutual. They have a portfolio product that will allow a mortgage to an LLC. I just settled on a property using this program 12 days ago.
Good Luck!!
Art
I’m buying property through an LLC. I’m using a small local bank for my financing. It’s purely commercial, so 25% down. Not great for ROI, but they haven’t yet asked where the down payment has come from. Right now it’s cash out of our pocket, but we’ll certainly be getting secondary financing in the future.
The interest rate is a little higher and the terms are a little tighter, but I’m comfortable that if the bank’s happy as an investor, then I’m probably not doing things too risky. Good luck!
nope. If there was, we’d all be doing it.
Buy it in your own name. When you acquire a bunch of htem, then look into an LLC or c-corp. Put an umbrella policy in place-they are a lot cheaper than using a commercial lender. Just my opinion