It's a PITA, but at least the process follows certain rules, and you're not subject to the vagaries of the credit committee at a local bank, that might well be under regulatory pressure.In answer to your question, yes the bank might "force" your loan off its books, one way or another.

James, I do have an identical unit comp (215K).

An investor landlord has to abide by the Condo HOA Decs/Bylaws and Rules.

Unfortunatly, as in everything in life, the 80-20 rule applies.

-Steven the Tax GuyYour guide to IRS laws, rules and regulations.

OK by me if that becomes the rules of the game.

As a general rule, for a disregarded entity, the owner will be treated as owning the residence for purposes of satisfying the ownership requirement of section 121, and the sale or exchange by the entity will be treated as if made by the owner.

I understand why the banks want skin in the game, I was more concerned that there was a Fed rule that disallowed this type of bank behavior.Looks like I need to keep shopping.

. :(- Had the IRS issue a ruling on my use of a large chunk of my retirement funds -- they determined that I get to keep my money

The rule of thumb that is pushed by those with an agenda is 2.5X your income.