Refinancing my current FHA to Commercial Financing

[Carter Mayberry]

Bought a 4 plex with an FHA loan under my personal name. Closed on it January 19th 2024. After renovating, I'm ready to refinance and push the property to my LLC. Am I going to run into any issues with this if I close before a full year? Any taxes or other issues that I may run into down the line?

The goal is to pull the 60k worth of equity out and free up my FHA & DTI so I can rinse and repeat. Just want to double check I'm not going to run into any issues. Thank you!

[River Sava]

Quote from @Carter Mayberry:

Quote from @River Sava:

Hey Carter - 

With a DSCR loan, refinancing into an LLC is definitely possible, plus these loans don't require a full year of seasoning. DSCRs focus on the property's cash flow rather than your personal DTI. Happy to connect with you.

However, the property cannot be owner occupied. Are you currently living in it as well?

Yes, it is currently an FHA. I would be financing it to a DSCR and moving it to an llc at one. Yes i am living in one unit

Gotcha - just as a heads up, most non-qm DSCR lenders do not allow for owner occupied properties