Hi all, quick question, I'm planning on moving a property into an LLC. I have a good amount of equity in the property so was thinking about taking out a personal HELOC before I deed the property into the LLC. Would that HELOC still stand in my personal name or would it by default be transferred to the LLC as well? Thank you!
@Adah N., I have used Huntington for many of my HELOCs. They have provided lines on both primary residence and an investment duplex. I will note the duplex was titled in my name though. They will not do HELOCs on properties that are not personally titled.
@Patrick Horrocks, typically, the HELOC will be closed entirely and any balance will be due and payable immediately. A deed transfer is as good as a sale from the bank's point of view.
Basically, don't transfer it if you want a HELOC, or don't bother with the HELOC if you are transferring.
@Patrick Horrocks 1) if the property is a rental property - finding a heloc lender will be difficut 2) you can ask any HELOC lender you are considering this question so you wont be surprised
@Patrick Horrocks, typically, the HELOC will be closed entirely and any balance will be due and payable immediately. A deed transfer is as good as a sale from the bank's point of view.
Basically, don't transfer it if you want a HELOC, or don't bother with the HELOC if you are transferring.
@Evan Polaski this is kind of what I figured. Thank you for confirming.
@Patrick Horrocks 1) if the property is a rental property - finding a heloc lender will be difficut 2) you can ask any HELOC lender you are considering this question so you wont be surprised
There are plenty of banks that do HELOCs on rentals, so don't let that discourage you! The LTV is typically lower than a personal residence- around 70%.
You can get a HELOC in your personal name- if you transfer the deed, the HELOC will definitely still be in your name and the bank could call it due or close it if they wanted to.
There are plenty of banks that do HELOCs on rentals, so don't let that discourage you! The LTV is typically lower than a personal residence- around 70%.
You can get a HELOC in your personal name- if you transfer the deed, the HELOC will definitely still be in your name and the bank could call it due or close it if they wanted to.
@Corby Goade Thank you! I do have a bank that would do it. I don't need the capital right away but would use it if an opportunity came up down the line. I'm thinking if I had the HELOC open without taking any draws that the bank would close it when the title of the property was transferred. I can definitely ask the banker but I also don't want to spook them and then not have them grant the loan in the first place.
@Adah N., I have used Huntington for many of my HELOCs. They have provided lines on both primary residence and an investment duplex. I will note the duplex was titled in my name though. They will not do HELOCs on properties that are not personally titled.
@Patrick Horrocks- good to hear that you have a HELOC source lined up ....better to make sure lender wont call / close the HELOC with clarification unless you can afford to deal with paying it off or moving it if this indeed occurs when and if you shift it to a LLC