cash out finance - property owned by LLC

[John Digenan]

I have an investment property (4plex) we've owned for about 15 years. We made our last mortgage payment last year. It has great cash flow and we decided to get some cash out by getting another mortgage. After shopping around, I found a lender with a good rate. After providing all the needed paperwork and getting pre-approved, he apologized and said that they would not be able to give us a loan because the property was owned by our LLC. He said that Fannie/Freddie required the property to be in our personal names because that's how we were getting our mortgage. The only workaround was to put the property in our names personally, wait 6 months, and then get financing. I went to one of the lenders we originally rejected. He said that we could get the loan now but would have to do a quitclaim at close and put the property in our names. We can do that but it's suboptimal. I'd prefer to have the property in the name of the LLC. Also, he warned us not to put the property back in the LLC name after closing as that could trigger a call on the loan.

Has anyone run into similar financing issues with their LLC? Any guidance is appreciated. Thanks.