Issues Getting Business Loan

[Meaghan Hudy]

We are brand new at this, outright own our own house right now which we are going to move out of and use as a rental income. We considered getting a home equity loan to take out 50k of the house to push towards our next house— but the home would have to stay in my name, not an LLC. The bank said they cannot give me a home loan through my business's name because we don't have 2 years of prior experience in this field. I feel like we keep hitting wall after wall trying to accomplish this. From what I understand, the house would have to STAY in my name, for the 2 years of experience, meaning the LLC is uninvolved with no protection for injuries/lawsuits. I do have progressive home insurance, that covers 300k right now, but I think I can raise my coverage to include more. What is the next logical step…? Rent out the house for 2 years and risk it all or don't take out a home equity loan? We were hoping to have the 50k to downsize considerably and RV live. We *could* just get the RV with a loan but obviously we figured paying cash for that would be less costly than a loan. Ideas??

[Erik Estrada]

Quote from @Meaghan Hudy:

We are brand new at this, outright own our own house right now which we are going to move out of and use as a rental income. We considered getting a home equity loan to take out 50k of the house to push towards our next house— but the home would have to stay in my name, not an LLC. The bank said they cannot give me a home loan through my business's name because we don't have 2 years of prior experience in this field. I feel like we keep hitting wall after wall trying to accomplish this. From what I understand, the house would have to STAY in my name, for the 2 years of experience, meaning the LLC is uninvolved with no protection for injuries/lawsuits. I do have progressive home insurance, that covers 300k right now, but I think I can raise my coverage to include more. What is the next logical step…? Rent out the house for 2 years and risk it all or don't take out a home equity loan? We were hoping to have the 50k to downsize considerably and RV live. We *could* just get the RV with a loan but obviously we figured paying cash for that would be less costly than a loan. Ideas??

Where do you plan to live? Do you have another primary lined up? 

You can do a DSCR cash out refinance and close in an LLC as long as you live at another verified residence, property meets the title seasoning requirements, and market rents or lease cover the mortgage payment.