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Where can I find a lender who will let me close with my investment property in a new LLC

by anneberggg139 from Baltimore, Maryland. Jun 14th 2017 Reply


David R Youngs - Assistant Vice President (DavidRYoungs)
#4 ranked lender in Minnesota - 48 contributions

These can be difficult to find because as I'm sure you've learned already through your search, most lenders don't offer this option... In order to close the loan and hold title to the home in the name of an LLC, you will need what is called "portfolio" financing. This means that the bank providing the financing is not back or insured by the major GSE's (Ex: Fannie Mae, Freddie Mac, Ginnie Mae, etc.). Because they are taking on the risk themselves, this usually will result in a little higher interest rates and closing costs. However in order to find a solution to overcome a roadblock like this, likely this is the only option you'll have. You will want to find a true wholesale BROKER that is state licensed in Maryland and that has a good reputation. There are wholesale bank investors they can access for you that offer solutions to this, as I am working with one client here in MN to accomplish exactly what you are proposing. I hope that you are able to identify a quality professional in your area that can help you with this! Feel free to call me at 866-680-2840 Ext 12 or email me at dyoungs@progressivels.com if you have any other questions. Thanks!

Jun 14th 2017
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,055 contributions

There are no conforming loan programs which allow you to finance in an LLC.. the protection you seek by using an LLC is the exact thing the lender is trying to avoid, so for that reason, it's not allowed.. Even portfolio lenders don't like closing in LLC.. some will but most all will not.. however, there's sort of an "unwritten" rule when it comes to post closing. if you purchase and after closing, you deed the property to your LLC, then so long as the payments are made on time, it's typically not an issue, but this is not guaranteed. There is a due on sale clause written into every new mortgage which states if the property changes ownership, the loan must be paid in full . So if you do deed the property to your LLC after closing, it's possible the lender can call the note due,, but not likely. If you do find that portfolio lender who will allow it.. be prepared to pay a higher interest rate and have a larger down payment requirement.. . I'm a preferred Lender with Arizona and California being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Jun 14th 2017
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We offer this option.

Jun 15th 2017
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