Is it true you cant refinance under a LLC??

Question

I read you cant refinance under aLLC. If so how do people do the brrrr and have multiple rental homes not under their llc?

Joshua Tessier · Answer

Why do you want an LLC?  If this is being refinanced as a primary residential mortgage then I do believe your correct you can’t put it in an LLC. In my experience you refinance just after the renovation and move onto the next potentially leaving very little equity behind. So if there’s no equity what are you using the LLC to protect?  Your better off with just an umbrella policy. You can shelter assets in a Trust if needed but I’m assuming if your brrrring properties you don’t have millions for someone to go after anyways so why make your taxes and everything more complicated to protect how much?

Daniel Vandenbos · Answer

@Margaret Azzano you can totally refi under an LLC.  The rates/terms won’t be as favorable as a residential mortgage, it really depends on your situation.  If you have nothing to really protect (equity or other personal assets)!I wouldn’t really stress a LLC.

Margaret Azzano · Answer

@Matt Crusinberry thanks for the info!!! Random facts online lol definitely wanted to check here first!!!

Ned Carey · Answer

@Margaret Azzano as said above, yes you can absolutely refinance properties owned by an LLC. Now also as said above, financing properties owned by an LLC will be harder to finance and the terms will not be quite as good.

You need to talk to the right person at a bank. Most 'Mortgage Brokers" are in the business of making loans to homeowners. Many do not understand investment loans and that an LLC requires a commercial loan. Your best resource for finding LLC loans will be smaller local and regional banks.

Matt Crusinberry · Answer

@Margaret Azzano, I'm not sure where you read this, but you are able to refinance under an LLC. I would suggest you contact some lenders (commercial side of the house) and speak with them so you know your right and left limits. I wish you the best of luck!

Is it true you cant refinance under a LLC??

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