Rental Property Investor · Minneapolis · Member since 2018 · 14 posts · 1 vote
Hi everyone,
I have investment mortgage with credit union. I want to transfer my property under LLC
But credit union refuse to transfer it to LLC and they ask me to take commercial real estate loan for my rental property if I want my property under LLC.
Question:
1.) mortgage rates are different for commercial real estate loan compare to investment property mortgage?
2.) Since LLC count as business should I look for commercial real estate for my rental property?
How you guys get mortgage for rental property under LLC?
That is correct commercial loans are required when you own the property in a LLC. The credit union is sticking to their rules. You can leave it and take out an umbrella policy to protect yourself from a lawsuit. Many spirited conversations here on BP regarding ownership in a LLC versus in your own name. In your own name you can take advantage of the residential loan interest rates. A commercial loan will have a higher interest rate probably around 1%.