Looking For Lending Advice

[Toby Jurging]

Hello every and anyone ...

Situation is, we found two properties in Cincy that are currently college rentals, fully leased, looking to purchase and maintain as rentals. Original plan was use SDIRA funds to finance 20% down payments and finance remainder under IRA/IRA LLC.

Unfortunately we have hit a snag with lending. Lender (broker) said that his financial institutions will not accept LLC/IRA (custodian) on loan agreements. Said that it has to be personally signed by myself (and in this case wife). And it appears that it isn't as easy as just partnering with the IRA (ex; IRA pays 20% down and we finance rest ... theoretically an 80/20 split) Rather everything has to be split 80/20, so the DP has to be 80/20, the mortgage 80/20, so back to above issue of names on documents.

So questions are:

1.  Has anyone experienced this? And work arounds?

2. Has anyone / how do you finance properties as an LLC if what he says is correct?

3. Anyone use a lender that will accept LLC / SD IRA signing and not increase rates 2-3fold

Thank you everyone, appreciate any assistance.  Have a wonderful day .

[Chris Mason]

Sounds like a commercial loan scenario, not residential. Pros: You get the fancy business entity stuff. Cons: No more Fannie Mae subsidy on your rate/terms/fees.