Updated about 3 years ago on . Most recent reply
Refinance - Personal to LLC
I currently own a rental property out right that I would like to refinance to get my cash back out of it for another purchase. I would like to put the property in an LLC when I do for liability reasons. However, my research thus far says I can not get a 30 year mortgage with an LLC. Without the 30 year term, this move becomes much less enticing. Is there something I am missing? I have looked into getting the mortgage in my name, and then transferring to LLC after mortgage is completed, but I get mixed reviews on this as being a bad idea. How do I accomplish both outcomes?
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@Ben Habig I do DSCR loans in LLCs all day. Similar to @Jay Hurst , this would be a higher rate than conventional lending programs but its a keystone loan product for my investor clients.
A DSCR loan, aka lite doc or business purpose loans, uses the rents you receive on the property and divided by the new loan PITI to receive a ratio. Simple math would be a PITI of 1,000 and rents of 1,500. That would be a debt service cover ratio of 1.5. Basically, this property cash flows. FICO, experience, and LTV are also factors but this is the basis of the loan. No need for tax returns, Verification of Employment, or income. I have been through this loan as an investor myself and originate these loans all the time.