North Bend, OH · Member since 2018 · 1 post · 0 votes
Newbie alert! My husband and I just purchased a single-family to use as passive income in March 2018 by using money from a HELOC from our primary residence. We purchased the single-family using our LLC, but now we want to refinance it so we can use that money on our next property. The bank told us they could only refinance if we close in our names instead of the LLC. Is that typical or should we keep looking for another bank? We thought we were following the correct steps by using our LLC to purchase the property, but should we have purchased it in our names and then transferred it to the LLC? If so, is there a wait time before you can transfer (probably not the right term!) to the LLC? We live in Cincinnati, OH, and the property and the bank are in Indiana.
Cincinnati, OH · Member since 2015 · 39 posts · 30 votes
8y
That's normal for larger banks but there are banks that will lend to an LLC and you just have to personally guarantee the loan. One issue you could have is that a lot of banks require a 1 years seasoning period before they will refinance.
As for transferring it to an LLC after you have financing, it could technically trigger the due on sale clause but I doubt any bank would actually call the loan.
I use Spring Valley Bank and they should be able to do it no problem. PM me if you want the contact info.