Hi, looking for a lender for a property in CA that is able to refinance an existing personal loan to a loan under LLC for a single home property investment. Any contacts welcome.
This can be done 3 ways.
1). If the current loan is a Fannie Mae loan that was taken out after 6/1/2016, Fannie now allows the title to be transferred to an LLC that the borrowers on the loan are the majority members of the LLC. So at least 50% ownership/member of the LLC.
2). You can take out a Non-QM loan with the title in the name of the LLC. However most Non-QM loans still require a personal guarantee and therefore it will still show up on your personal credit report.
3). You can take out a commercial loan in the name and title of the LLC. this will not require a personal guarantee and will not show up on your personal credit report.
The question I have is, why does it need to be in the title and name of your LLC. What is your goal with that?
I hope this helps?
Thank you Kevin, that's very helpful. My understanding would be that transferring the loan to an LLC would improve my personal credit position and allow me to leverage my credit - i.e., I was recently denied a Home Line of Credit bc the loan on the investment property was under my name (along with my business partner) vs being with the LLC. But perhaps that's not the right understanding for scenario 1?