Updated almost 10 years ago on . Most recent reply
Can an LLC obtain an FHA loan?
I know an LLC/Corporation is considered a living entity that can buy and hold real property. By that definition can an LLC obtain an FHA mortgage? I doubt it but want to be sure. What about a conforming loan or do LLCs only have to get commercial loans for residential property?
What Im looking to do is purchase a property to hold for a max of 2 years. I would use private money to buy the property and then refinance it in 6 mos to a year. Is that possible? The LTV on this particular property Im looking at is about 65% if I get it at the price I want.
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FHA loans are for individuals. With 65% LTV, not sure why they would be interested in FHA anyway?
For the brief scenario described, assuming the reason for using private money upfront, then refi months later is attributed to time for rehab, a renovation loan seems to make the most sense: this type of purchase loan is based on ARV! So, you get the funds to purchase, then complete the repairs using draws. No need to pay high private money rates (although you should expect the rate to be slightly higher than conventional conforming financing) and no need to pay fees twice for two loans. Kind of like a 203k.