How to: Refinancing From Conventional to 30 year note

[Mike L.]

Hi,

I haven’t gotten very clear direction from anyone (I’ve talked to a local bank and a mortgage broker).

I own a Sf house with three other partners in an LLC. We originally bought the house 2 years ago. Because we didn't have much credibility, we got a 20 year schedule with a 5 year term and around a 6% rate. We obviously need to refinance, but I want to do it the smartest possible way.

I'm told you can get a Fannie or Freddie loan if you are an LLC. I'm told we could switch the deed to one of the members of the LLC, qualify for a 30 year note, close on the refi, then immediately sign the deed back into the LLC. Is this really the way to do it? The mortgage broker said it could "trigger" a pay on sale clause but it "shouldn't " happen. Didn't seem very reassuring.

Related but separate: how do you get 30 year fixed notes on investment properties from the beginning? If I wanted to buy a 20 unit apartment complex?

Thank you,

Mike