Refinancing and transferring title to LLC

[Benjamin Rodriguez]

Hi Everyone,

I'm in the process of trying to refinance on my four unit building from my current 30 yr FHA loan to a 30 yr fixed conventional.

I initially began the refinance under my name with a local bank who is a portfolio lender and locked in a rate in the low to mid 3's for a 30 yr conventional loan. However, I then requested to refinance title under my single member LLC, which I established earlier this year. When I informed the lender of this, they changed their terms and told me that if I wanted to refinance under my LLC it would have to be done as a commercial loan with only an 5 or 7 yr ARM or 15 yr fixed for a half point higher than my locked rate residential quote.

My question is do other lenders require residential 1-4 unit properties to be refinanced as commercial properties when transferring title under a single member LLC? Are these properties no longer considered and refinanced by lenders as residential conventional loans with loan terms equivalent to non-LLC borrowers?

Any advice on this would be greatly appreciated.

Thanks,

Ben RodriguezEZ Property Group

[Henry Lazerow]

All residantial lenders will require it in your personal name for the refinance. As mentioned above though the solution is quit claim it into an LLC right after close. Your attorney can do this for you within the hour it's easy. Shop around for rates though mid 3's is high right now should be able to get that down a bit.