Underwriter Lender Rules for Partnerships

[Nooshin Detches]

Hi everyone, 

Our LLC owns a single-family property in Southern California which was purchased for all cash a few years ago. We have had great tenants in the property since March. We want to refinance this property and use the proceeds to buy another property.

We were told by our mortgage broker that underwriting lenders generally will not lend to entities/LLCs. Mortgage broker advised us to pull the property out of the LLC so the lenders will agree to give us the loan, and then put the property back into the LLC once the loan is in place.

Is this common practice, or should we shop around for another mortgage broker?

Thanks in advance. Looking forward to hearing from you.