Conventional loans on SFH owner in an LLC

[Mike Ganske]

New to REI here so any advice is helpful. I understand tend the importance to own your rental in an LLC, however it can be difficult to get banks to give you a loan for a house owned in an LLC. I would prefer to not transfer the property to the LlC after the fact (I’d hate to have the loan come due for violating the terms ). Does anyone have recommendations on how to get loans for a house I want to put in an LLC? Are there certain institutes I should go to or a process to follow? Thanks for your advice!

[Sam Craven]

Mike you either need to:

Get over having it in your LLC name so you can access the FHA conventional financing

Transfer it to the LLC after the fact and take on the extremely low risk of a due on sale. (it just doesn't happen)

Go find a commercial lender that will lend to your LLC. Interest rate will be higher and loan term will be 20-30 years but they are also easier to qualify for when buying income properties.

Best of luck!