Cash out refi no mortgage on home

[Jasmine Wilkes]

Are there lenders that will do a cash out on a property with no mortgage? And I wanna separate business from personal so I wanna get the loan in my llc transfer title to my llc.. 

[James Mc Ree]

You get up to 10 subsidized mortgages through FNMA and FMAC. I would use those for your cash out refi before going to DSCR if you haven't already used them. There is a lot more paperwork for these traditional mortgages and they will probably take 2-4 weeks longer, but you could save quite a bit in fees and rate.

Otherwise, DSCR or a commercial loan is the way to go.

You may be engaging in overkill if this is your first property and you are trying to put it into an LLC. Insurance is a better solution. It is simpler and lower cost. Folks use an LLC for anonymity and liability protection. You won't have anonymity since property records will show Jasmine sold the property to the LLC.

You will get liability protection with the LLC if you do it right, but you will pay more for it and might not tangibly benefit from it. For example, you will have insurance either way. Adding a liability policy can provide up to $1M in coverage. It's very unlikely that you will have a claim or judgement that large and you won't incur the LLC overhead.