Refinancing from personal property to LLC

[Keith Hackett]

Living in VA "owner occupied investment" property. VA funded home requires I live in the home for a period of time. My hope is to create an LLC and when I leave the home, somehow refinance it under the LLC entity. Any advice on how one might go about doing this? I'm educating myself on corporate entities and the benefits and risks of each but how to go about refinancing under LLC is a complete mystery and if the costs of the refinance would even be worth it. I really do NOT want to sell this home. It's my first property and I want to experience the cash flow, be it positive or negative so that I can learn. Preferably positive which is why I am here on BP.

[Cassi Justiz]

So the downside of refinancing to the LLC is that you will most likely have to use commercial or business banking. These terms are usually shorter (15-20 years) with higher interest rates and adjustable rate mortgages. There are some exceptions, but this is pretty much the standard.

If you have to refi out of your VA loan, I would definitely recommend refinancing into an owner occupant conventional mortgage before moving out. The owner occupant loans are some of the best loans that most people will ever be able to get. They also will also usually have fixed interest rates.

[Keith Hackett]

@Cassi Justiz can I have two owner occupant loans? What are the credentials?

[Cassi Justiz]

@Keith Hackett, 

You can have multiple owner occupant loans, but you may not be able to use your VA loan for multiple purchases. There are some quirks about the VA loan that come into play if you try to take out a second VA loan. (Purchase limits, etc). You will definitely want to work out your strategy with a lender that is experienced in VA loans. They may have some good recommendations for you based on your personal situation.