Investor · Bellefonte, PA · Member since 2008 · 1k+ posts · 88 votes
Does anyone know how the banks are handling owner financing these days? I'm looking at a property that the owner will finance and I wanted to see what the feel was for getting a traditional mortgage from a bank 6 months - 1 year after we buy the property. Would we even have to wait that long?
This is a transaction you should be able to get completed. Depending on your current connections in the mortgage world it may take a few calls to find a broker that understand what you are doing. All of the same investor guidelines are going to apply, 25% equity, fico, DTI etc (assuming a conventional refi).
Banks want to see your name recorded on the deed. Normally they require 6 months to refi 75-80% of the purchase price. At 1 year, the refi could be 75-80% of new appraisal.
We have 2 properties on our LLC and wanted to cash out refi 75% however the banks I've gone to say they will refinance if we do it in our name not the LLC.
If we refi in our names that mean changing the deed to our names. One of the bankers told me just it change back after we close. If we do that how can you write off the interest if the properties are in LLC and the mortgage is in our names?