bank won't let me transfer to LLC

bank won't let me transfer to LLC

Rental Property Investor · Minneapolis, MN · Member since 2016 · 9 posts · 4 votes

The bank holding my mortgage has informed me that they have made a business decision to not allow properties to be transferred to LLC's. I have gone back and forth wether or not an LLC is needed, but after doing some research I have decided I would like to separate my rental properties from my personal finances.

Has anyone else experienced this problem? What would be the best way to solve it?

Thanks for any input!

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Rental Property Investor · St. Augustine, FL · Member since 2017 · 189 posts · 127 votes
7y
@Mikael Lickteig I have owned several properties and never used an LLC because it really doesn’t protect you in the end. What protects you is insurance, insurance, and then more insurance. Look into an umbrella policy that deals with owners of rental properties and you will be fine. You can get an umbrella policy for 5 million that is inexpensive.
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  • Kristen L GarnerBusiness Member
    Lender · Phoenix, AZ · Member since 2021 · 451 posts · 287 votes
    3y

    Hi! You cannot close conventional or FHA loans under an LLC. But you can close non conforming loan products like DSCR, bank statement loans, or asset based loans in an LLC. You can purchase or refinance with any of these products and close in your LLC.

  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    3y

    @Mikael Lickteig

    I recommend also speaking with an attorney as I have spoken with several attorneys who have advised having a home in your personal name and transferring it to your LLC without monetary compensation is co-mingling and does nothing for asset protection. Especially if you personally are responsible for the loan and are on the mortgage.

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  • Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    Why won't they allow it? Is it a homeowner loan? 

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