Trouble Securing Mortgage for less than 50K Under LLC
Hi, a business partner and I are having trouble securing a loan for our Single Family Rental in MO that we purchased for ~50k in cash, we are trying to cash out and get a mortgage, and repeat the cycle, but securing a mortgage has been a real challenge.
We have tried to reach out to local credit unions etc, but to no avail.
If anyone has any online resources to suggest, it would be greatly appreciated!
No institution wants to write a mortgage that small. They have so much compliance paperwork with the Federal Government, they cannot make money for such a low loan balance.
Short term, you are going to have to look to a private lender.
Long term, vote for business-friendly politicians.
I did this exact scenario and pulled a mortgage in Mo. into my LLC with my partner. We cashed out refied. The ARV at the time was 127,000 allowing us to pull $88,900 out. We used Shawn with Community America Credit Union. We were not super impressed with the drive and communication he had but eventually the loan finalized for a 5-year commercial loan amortized over 30-years with a balloon for 5-years.
Originally posted by @Joseph Holliway:I did this exact scenario and pulled a mortgage in Mo. into my LLC with my partner. We cashed out refied. The ARV at the time was 127,000 allowing us to pull $88,900 out. We used Shawn with Community America Credit Union. We were not super impressed with the drive and communication he had but eventually the loan finalized for a 5-year commercial loan amortized over 30-years with a balloon for 5-years.
Thanks! We've found a ton of potentials for loans above 50K, the problem is the below 50K market... We have one credit union/bank offering a guidance loan / LOC that the house will be collateralized, but as you said, communication is not ideal. (I don't blame them as they basically make nothing on us) but business is business.