Can We Transfer Title to LLC With Same Loan?

[Christopher Tacchi]

Hi! My two partners and I are trying to transfer the title of our investment property to an LLC, while maintaining the same loan.

For background, only 2 of the 3 partners are on the loan and title. However, all 3 partners own an equal share of the LLC, so we want to transfer the title to the LLC. Can we do this while maintaining the same loan, so our rates don't go up? It is a second home loan.

Thanks!

[Jason Wray]

The only way you can "Quit Claim" the title into an LLC to change the vesting is if the Bank or Lender "Allows" you to without a "Due on Sale" clause. Most banks and traditional mortgages "Do not" allow foe the property to be vested or quit claimed into an LLC unless it specifically states it on the closing disclosures.

In most cases even on DSCR loans the Bank/Lender still requires you to sing a personal guarantee even if they allow the loan to be vested into the LLC.

If your lender does not allow it you can refinance the mortgage and use a DSCR or a Portfolio loan program to take care of closing in an LLC. This would be a good idea if you want to pull any cash out to buy another property.