Posted by Rob on September 07, 2004 at 16:50:18:
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.