refinancing a single-family purchased in an LLC

1 Reply

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.

Shari Wagner

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.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.