Refinance - LLC to Conventional

[Ethan Edwards]

My business partner @Duran Villegas and I have 3 small multi-family investment properties in Memphis, Tennessee, held under the name of our LLC that we would like to refinance. Two tri-plexes and one duplex. One of the loans is hard money, and the other two are portfolio loans (7%, 5-fixed, 20 yr am, and 4.75%, 5-fixed, 20 yr am). We are looking to restructure the debt into longer term fixed conventional debt, which we are aware this can be done in our individual names. My business partner has one year of W2 and one year self-employment. The issue that we are running into is that conventional underwriting is requiring that my business partner show TWO years self-employment. We suggested qualifying the loan under one (my) income only (which exceeds the minimum income qualifications), but underwriting has indicated that both LLC members are required to qualify.

Has anyone else experienced this issue? We are open to suggestions or other lending options to restructure our debt on these properties.