Looking for lender that works with LLC's for vacation rentals

Looking for lender that works with LLC's for vacation rentals

Member since 2020 · 5 posts · 2 votes

We own two vacation rentals in AZ. We paid cash and are looking to do cash-out refis. Nothing huge, a 50% LTV would be fine. All the lenders I've spoken to want us to change title to the LLC members individual names. I would really like not to be listed on these loans as I want to buy properties for myself outside the LLC and think this would hurt my loan-ability in the future.

Any advice?

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  • Real Estate Agent · Los Gatos, CA · Member since 2016 · 88 posts · 39 votes
    4y

    Check out Patch of Land

  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    4y

    Just general rule of thumb. Fannie Freddie no LLCs. Commercial (local) bank yes LLCs. 
    And the new DSCR that are all the rage also allow LLC.

  • Kristen L GarnerBusiness Member
    Lender · Phoenix, AZ · Member since 2021 · 451 posts · 287 votes
    4y

    Non-QM products will allow you to keep the transactions within your LLC: DSCR, bank statement loans, asset utilization, etc... Feel free to PM with specific questions.

  • Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    4y

    @Alex Jones

    The issue with legal entities, such as LLC's, is that they are NOT eligible for conforming residential loans. You need to get a nonconforming loan product. Residential lenders have a couple of options, but its not their focus. You need to get some sort of "commercial" financing, i.e. non-conforming loans.

    I'd be happy to chat if you like.  Good luck.

  • Member since 2020 · 5 posts · 2 votes
    4y

    @Luke Carl Thanks.

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