You have to keep 25% equity in the home to cash out. Mostly lender won't cash out under LLC for conventional loan. You do have option under commercial loan.
Harjeet Bhatti, Lender in IL (#230554)
I would sell the house for $190,000 buy $800,000 apartment building that profits $70,000 plus a year.
Assuming that you have a good reason for keeping the house in NH, there is such a thing as an equity line of credit on a commercial (owned in LLC) property. Although for that small an amount, you will have trouble finding one. You might simply take out a small commercial mortgage with a local portfolio lender. Don't talk to "mortgage departments", talk to the "commercial lending" departments. You will likely only get 75-80% of the appraised value. Once you have title in an LLC, it is not a residential mortgage, it is commercial. And they won't like the fact that you are not local, either.
@Jeff S. your question stated "getting a loan with little $ down". The assumption here is an investment property but maybe not? What is your loan for specifically? Primary home? Investment home? Something else? Knowing what your loan is used for will help us giving the right recommendation. Thanks!
Andrew Postell, Lender in Texas (#392627)
My commercial lender will only do 50-60% ltv for cash-out, plus high rate and crappy adjustable and callable terms plus bothering you to report your financials every year.
I did a 15yr fixed (could've done a 30) cash out on a rental house recently I own personally. 4.25% fixed with minimal costs at 75% LTV. No reporting.
Was the LLC 'asset protection' on a house worth it? Need to stay or sell now.
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