Deeding homes and first time home buyer benefits

[Spencer Lewis]

Hi! My name is Spencer and we are exploring options to protect our personal assets in a business partnership. We have explored the option of purchasing directly into an LLC and, as expected, rates are horrible from these specialty lenders (8%+ w/ personal guarantees). We were told one option would be to buy the house under your own name and deed to the LLC entity. I understand the due on sale clause and that technically the bank could call you and ask for repayment on the mortgage. Do banks actually follow through on this? Or since your mortgage was probably sold off to a larger portfolio, they don't take the time to call you on it.

Secondly, if the bank issues a mortgage to the LLC entity, will I lose my First Time Home Buyer benefits? It is my understanding the mortgage will still flow through to your credit report, etc. What are the benefits (lower down payment, tax benefits, etc.) and is there a point where the benefits out way purchasing a rental property (i.e. purchasing $100K rental now when I might purchase an $800K home for myself in 5 years).

Any insight on above would be very much appreciated!

Thanks!