Residential Loan on First Rental Investment

[Jill Hamburg]

My husband and I are under contract to purchase our first investment property, a fourplex. We are using a 1-4 Residential Loan under our personal names with plan to do a Deed Transfer to put it under my LLC post closing. Do I need to reconsider my loan selection and put it under my LLC prior to closing? My contract states deed transfer is subject to loan approval.

The lender is requiring 50% down with much higher interest rate if I were to close with LLC because they stated it would be a commercial loan.