Best option for mortgage when buying rental to hold in LLC? (NY)

[Corey Demuth]

I am trying to buy a SFH to rent out. I am running into a problem where residential lenders don't want to let me take title into an LLC (even though I would personally guarantee the loan.)

OK.

So I talked to some commercial lenders, but they are offering me what seem like pretty difficult terms to make a deal work. Mostly 5 year fixed rate loans amortized over 15 years. The payments are too high (going to cut into my profit too much vs a residential 30-yr fixed loan) and on top of that the closing costs are higher and you basically MUST refinance every 5 years due to the balloon payment (which leaves me vulnerable to interest rates going way up, AND means I have to pay some closing costs again every 5 years.)

Is there any other way to do this?? I have heard a few times (including on this site) that people have said there are some places where you CAN get a residential loan when buying property for an LLC.

One person mentioned that she has a special "closer" who can get these deals done, but who charges 2 pts to do them.

A banker told me she knows someone who knows a way to get it done in some cases (and I am waiting to hear back from her.)

Another article I read pointed out that it is not specifically disallowed by Fannie/Freddie as most people think, but that you have to get a bank that understands the fine details of the underwriting rules.

Also, I read a few posts on here where people mentioned getting deals like a 20 year fixed rate business loan (not amortized over 20, just literally 20 year fixed.) Another guy said he gets 25-year fixed commercial loans at 5-6%.

Can anyone tell me either:

-Specific banks that do loans in NY, which will allow me to do a residential loan for a rental property that's going to be held in an LLC

or

-Commercial banks that can offer me better terms than 5yr fixed with 15yr amortization, again they must lend in NY however.

Please note, I am not interested in simply buying under my name then quit-claiming, and/or using land trusts to try to hide the transfer of title; I can't risk the whole DOS clause coming back to bite me.

I appreciate any help or advice you can give me! Thanks!