Tenants by the Entireties and LLC Mortgage

[Karen C.]

Hi everyone!

So my husband and I have an LLC together which currently owns our rental properties. The agreement states "the Percentage Interest in the Company owned by [husband] and [wife], as Tenants by the Entireties, shall be 100%."

We have been trying to do a DSCR cash-out refinance and the lender is asking the operating agreement to be broken down as a separate percentage details of ownership.

Is this a standard request from a loan underwriting team? It seems the agreement to me is explicit enough and that both my husband and I own the LLC therefore should both sign for the new loan as managing members.

Am I not understanding this correctly? 

Any advice here would be greatly appreciated! 

[Tanner Cohen]

Hey @Karen C., 

For Entities that consist of more than one member I require Fully executed Bylaws or Operating Agreement including breakdown of all members and signing authority. Since there are two of you, even though you are husband and wife, there needs to be a breakdown of ownership (50-50) or whatever you agree to. Your ownership of the LLC is not in question but the % of ownership for each of you is. This is what my shop requires and I cannot speak for others, but I do believe this is standard.

Hope that helps! :)