STR Non-QM interest rates too high.

[Jesse Goldstein]

Hello all.

I am working on refinancing out of a BRRR-STR property I purchased in an LLC since we have multiple owners. Our mortgage broker just quoted us a 6.75% rate on a 30-yr fixed 75% LTV loan. He initially quoted me 5.5% (same terms) for a long term rental but said we were not eligible given our STR goals. QUESTION: is there a way to enter into a long term lease with a separate entity (or one of the partners in our LLC) to meet this lender's criteria who can then use the property as an STR?

I generally hate to complicate things, but the interest rate difference is significant, and a long term lease might also help support our appraisal value. I have an email out to my real-estate attorney but wanted to hear what you all had to say as well.