Need advice on home equity loan problem that’s not a problem

5 Replies

Hello all:)

I recently applied for a home equity loan on a property that I've had rented for 3 years now and on paper own it free and clear( personal loan unsecured ) I was told by the bank that the property could not b in my LLC for the loan . So I quit claimed it to my name and now they say I have to wait 6 months since it just changed ownership on paper ...... any thoughts ?

@James Petry are you interested in getting a Heloc? If so, and it's in your personal name, Pen Fed will do Helocs on rentals at 80%LTV if you have 3 properties or less including a primary. 12 year draw at variable prime + 1%, no closing costs unless they need to do a site visit appraisal (they back charge 3rd party costs waived at opening if you close it within 24 months) and you choose I/O or P/I payments. Alternatively, you could get another private lender to loan to you and use the property as collateral (ie put a mortgage on the property and sign a promissory note).

@James Petry if the bank is using standard Fannie Mae guidelines (which they probably are not) then you would not have to wait 6 months. If you are the majority owner of the LLC then that should count as your seasoning.