Should we transfer our home into our business name for a HELOC

[Howard Johnston]

Hello Bigger Pockets folks,

Thoughts from anyone on if we should transfer the deed (ownership) of our home from our personal names into the name of our company? We are about to apply for a HELOC loan, we own the home free and clear, are turning it into a vacation rental. Using our HELOC to fund at least in part our first deals.... so would all of this be easier or is there any benefit to just putting it all into our business? We have an S corp.

Any pointers or thoughts would be fantastic.

Cheers,

H&H

[Bryce Cutler]

@Howard Johnston 

Bankers point of view here, I don't know of any banks that do a HELOC on a personal residence held in a business name. Not saying that they don't exist but 20 years in banking and I have worked for 4 banks and none of them would do a HELOC in the name of a business.

If you get a HELOC before changing the name you would be better off but read the fine print in the HELOC paperwork and it probably states that if titling in the deed changes you must notify the bank. They can call the loan if they find out, but the reality is if you don't tell them they probably won't know.

Hope this helps, best of luck to you. 

Bryce