Lancaster, PA · Member since 2017 · 8 posts · 5 votes
Hi all!
I just bought my first BRRR property under my LLC in Elizabethtown, PA. I'm having some difficulty finding a lender that will refinance my hard money loan where I can cash-out refinance at 80% LTV. I have found some local lenders at 70% LTV but no one that will do 80% LTV under my LLC. I was told that I can't do 80% LTV because I used my LLC. Is that accurate?
Any advice would be greatly appreciated. Thank you!
I just bought my first BRRR property under my LLC in Elizabethtown, PA. I'm having some difficulty finding a lender that will refinance my hard money loan where I can cash-out refinance at 80% LTV. I have found some local lenders at 70% LTV but no one that will do 80% LTV under my LLC. I was told that I can't do 80% LTV because I used my LLC. Is that accurate?
Any advice would be greatly appreciated. Thank you!
LLC lenders generally cap refinances at 75% and go lower with no seasoning on title. Conventional financing is the best way to go in the beginning. The money is the cheapest, but lending to an LLC is not allowed. Unfortunately, you're already pretty far along in the process. Once you're using the LLC, you'll be restricted to a business purpose loan and those lender's guideline restrictions.
Lancaster, PA · Member since 2017 · 8 posts · 5 votes
7y
@Eric Veronica Hey Eric, I don't know if I fully understand your question. I used a hard money lender to buy the property and my LLC is the borrower. My name is not involved right now.
Lender · Cleveland, OH · Member since 2011 · 588 posts · 439 votes
7y
@Jordan Stewart you answered my question. The LLC is the borrower.
Often times the investor has the title in the name of the LLC but the actual borrower is the individual investor. In that circumstance the borrower would qualify for a conventional residential mortgage.