Which Lenders Close Loans to LLC's?

Question

I have my four-plex in my personal name, and would like to transfer title to my LLC. My mortgage is callable upon change of title, however. My current lender (Chase) does not close loans to LLC's. Neither does Garden State Loans, who I have done business with in the past.

Any recommendations for a lender who will refinance a fourplex into an LLC?

Thanks.

Any recommendations for a lender who will refinance a fourplex into an LLC?

Thanks.

David Dachtera · Answer

@Wade Garrett,

Jeff Beard makes a good point. Until your LLC has it's own revenue streams and credit established, you will likely need to provide a personal guarantee. Something to consider ...

Jeff B. · Answer

What most fail to understand is the LLC must have a revenue stream if there's any desire of getting loans for anything - - even room furnishings for the boardroom.   Lending remains the same regardless of the entity, so the LLC need a PnL and underwriting just like a personal loan.

David Dachtera · Answer

@Wade Garrett,

You need a commercial lender. LLCs get commercial loans. The rules, terms, etc. are a bit different.

Russell Brazil · Answer

Most banks will close loans on Llcs. It will merely be a commercial loan instead of s conventional mortgage.

Bryan O. · Answer

@Fred K. is partly correct. Land trusts DO trigger DoS clause if you change the beneficiary. Look at the Garn–St. Germain Act for details on that. Changing owner is changing owner, even through a land trust. I've not heard of any banks asking for the trust information to verify, so there is that.

Fred K. · Answer

transfer the property to a land trust which is not callable.  then create an LLC and transfer it to the LLC.  No record of the transfer to the LLC is recorded at the courthouse.

Which Lenders Close Loans to LLC's?

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