Obtaining New Purchase Fixed-Rate Mortgages under LLC

[Jeffrey Moser-Kuehl]

Here in the Milwaukee area I am having difficultly finding a lender that would actually write a mortgage or Home Equity under an LLC (a fixed-rate 30-year).

There are lenders that have ARM 30yr amortized options; I don't find that option comforting.

For the workaround to have the property be in an LLC, but have a fixed mortgage, is having Title be in the individual's name, and then post-closing transfer into LLC.

How have others handled this the recent history?

I've heard from one individual that various lenders are enforcing more terms on their agreements, and that Title transfer checks/enforcement might be expected...

I have reached out to PNC Bank, The Equitable Bank, Five Nine Bank, Summit Credit Union, and it is the same story, no LLCs.  However, PNC Bank did say they do not sell their loans, which I think would be more favorable in avoiding problems...  

Disclaimer: For a personal property, I have done a quit-claim deed from an individual who had a mortgage to myself and then paid their mortgage, however this was for only a few years not 30yrs, and with a smallish credit union.

[Alioune Camara]

@Jeffrey Moser-Kuehl — this is a common issue. Most traditional lenders won't give a 30-year fixed mortgage directly to an LLC because they consider it higher risk. The standard workaround is exactly what you mentioned: get the mortgage in your personal name, close the loan, then transfer title to the LLC via a quitclaim deed.

A few specifics to protect yourself:

1. Check the lender’s “due-on-sale” clause—some lenders can call the loan if you transfer title, though many allow transfers to single-member LLCs without triggering it. PNC not selling their loans helps here.

2. Use a single-member LLC to simplify lender compliance; multi-member LLCs are more likely to raise flags.

3. Update insurance immediately after the transfer so the LLC is named on the policy.

4. Document everything—keep the quitclaim deed and correspondence confirming lender acknowledgment in case of future questions.

This approach preserves your ability to get a 30-year fixed rate while still getting the liability shield from your LLC.