BELOC or HELOC ? - Property Ownership in LLC, Residential Loan

3 Replies

We recently transferred ownership of two duplexes to an LLC for liability protection. However, the loans on the property are in a personal name or through residential financing. With around 90k in equity at a 70%LTV, we are looking at options for pulling out the equity.

Should this be done through a Home Equity Line of Credit or Business Line of Credit due to the LLC? Anyone ever pull out equity after ownership is transferred to an LLC on a residential financed property? Any issues one way or another? Any recommended HELOC lenders?

One of our first purchases. Now we simply go commercial loans as it make it simpler in our eyes :)

Thanks!

@Chris Levarek This will depend on the lender and how comfortable with the new structure you have setup. Your existing lender may not like that you have transferred this to an entity so may want to inform them first. Also, it would be best to use a local bank for the HELOC or possibly PNC Bank.

Originally posted by @Chris Levarek :

@Dan Handford Thanks for the input. If the ownership is a company, I am wondering if a HELOC is even valid or if some kind of business line of credit is the way to go.

You should be able to get a secured business line of credit with the collateral being the building if it is a company.