We have recently purchased 2 houses in Pittsburgh that were value-add renovation projects. We purchased the property with our Pennsylvania LLC with the intent of refinancing once the remodel was done and it was rented. We are at that point and have spoken to a number of banks. Only one bank has said it will refi with an LLC, but said it was a 20 year mortgage with four 5-year ARM's. We don't think that is a great idea given the rates these days. Does anyone know a bank that will do a traditional 30 year mortgage on a single family investment property in Pennsylvania that is in an LLC? We have been told that we have to transfer it into our personal names, refi, and then quit claim it back into our LLC. This runs the risk of the bank voiding the refi, and costing us about $3000 in title transfers, which is not ideal. Thank you in advance for any help.
Both homes are valued at $100,000 and we're hoping to get $75k to $80k out of them depending on lender requirements of LTV.
@Alison Hallifax I am a Pittsburgh investor and have a lot of ties to local lenders. from what you are writing I feel that a 20 year amortized loan at 5% interest is very reasonable. Usually commercial loans are set up the way you have described. If you need more lenders in the area let me know.
@Alison Hallifax since the loans will be in your LLC rates will definitely be higher. There are companies out there that will do a 30-year refi at a fixed rate in an LLC, but the interest rate would be upwards of 7%.
I'll send you some recommendations that should be able to help!
thank you guys for the help! the search continues. we may just get them out of our name then refi 1) for ease of paperwork and 2) for better rates. appreciate the advice!
S&T bank does 30 yr amortization, 10 yr fixed terms for LLCs in their portfolio loan program. They also require no seasoning period. I know they have branches in western PA. You may want to give them a call.
Awesome, thanks Travis. I'll check them out.
@Elise Bickel do you have any connections that will do loans in OH?
@Alex Deacon do you know any in Cleveland that will do loans for LLCs?