Refinance Hard Money Loan

[Ashley Abramson]

I am looking to refinance a property I purchased with my LLC with a Hard Money Loan in March 2017. We want to live in the home. (Currently Renting elsewhere) We have renovated the property and it is now worth about $540k- $550k - we purchased for $347k Looking for a loan for about $415k or so. We tried to go FHA with no luck because it has to be in my personal name for 6 months (LLC doesn’t count) We were quoted a high interest rate for conventional. We talked about straight up buying the house from our LLC with an FHA for 3.5 down but our lender told us we can’t do that because of an Identity of Interest rule requiring 15% down. I am feeling like there has to be a way we can keep this property in EITHER our LLC or somehow our personal name, without having to put a ton of money down- since we put 10% down when we initially bought it. Any help, thoughts, or contacts would be GREATLY appreciated. Best, Ashley

[Albert Bui]

Originally posted by @Nghi Le:

Regarding having to put it in your name for 6 months, there was a rule that changed on December 19, 2017:

https://www.fanniemae.com/content/announcement/sel...

"We will now allow time held in an LLC that is controlled or majority owned by the borrower(s) to count towards the borrower's six-month ownership requirement."

However, I'm not sure if it applies to FHA loans. Might be good to get another bank's opinion on it, or @Albert Bui .

It depends on the context of the loan scenario but in this case if we’re using HMl to purchase and property and then try to switch the property out to your personal to do a rate term refinance then you should be able to do it after 1 day in you’re personal name. This is if we’re trying to do a rate term refinance which is defined as a refinance in which the borrower received 2000 or less at closing.

If the borrower wants to use fha to cash out refinance then fha requires 1 year title seasoning period to use market value and can use time within the LLC as a part of this 12 month period. The max cash out with fha is 85%.