First Time Investor Getting Loan in an LLC

[Josh Hickman]

Looking to buy my first investment, a small cash flowing SFR. I want to put it in an LLC but my banker (from a large national bank) told me that they don't allow LLC vesting for confirming loans since Fannie/Freddie will own it. They would do a Jumbo loan in this situation. Anyone else experience this?

I own my own home, have good income/debt ratio. Great credit.

[Kenneth Garrett]

@Josh Hickman

I have taken many loans out on properties through my LLC. The rates are higher (recently 4.50%), 75% LTV, needs to be owned in a LLC or other entity and requires a commercial loan. They will run your credit, but are much more Interested in whether the property cash flows (DSCR 1.25 minimum usually). Don't have to worry about DTI and won't impact it later. Commercial loans do not show up on your personal credit report. I've had much better luck with small local banks. If I can help let me know.