Residential Loan - Has to be owned by Personal Name?

[Nate Baumann]

Thank you ahead of time for your help!

I studied carefully and created an LLC before buying our first rentals. We were able to buy out a retiring landlord and bought two 5-plexes and one 4-plex. He owner financed them for 3 years. We are about a year and a half in. Property values have jumped in the past year which puts me in a great place for equity. I went ahead and set up a meeting with my bank to look at rolling out the 4-plex. My banker was very excited (of course) to do the residential loan, but told me I had to remove it from my LLC and move it into my personal name.

Is it true that we can't have a residential loan in the name of an LLC?