Pulling equity out of investment property!!?

Question

I found a bank that will do 75% LTV on my property . The problem I am facing now is that the bank says they cant do it, because the property is held in an LLC. Any suggestions or advice would be greatly appreciated.. I have tried many other banks as well, they will not bother either because the market value  is under 60k

Heath S. · Answer

Camronn W. Just take the property out of the LLC and put it back in after you do the refi.  The bank may say something if title changes just prior to your application so I would run it by the banker prior to taking out of the LLC, but this option may work.

Jon Holdman · Answer

You're probably talking about conventional financing.  That means loans that conform to Fannie Mae and Freddie Mac rules.  Neither allows loans on properties held in an LLC, even with a personal guarantee.   So, if you want conventional loans (30 year fixed rate) you'll have to have the properties in your name.  If you want to hold them in an LLC you will need to find a commercial lender who holds their loans in house.  They are out there, but are scarce.  If "many" means half a dozen then you've just not called enough yet.  If you're called every bank in your area then you may be stuck.  But my guess is that there is a bank or two in your area that will.  You just have to be persistent to find them.  Do realize that these won't be 30 year fixed.  You might get a 15 year fixed, ARM, or balloon or some combination.