We own 3 SF rentals and 1 - 4plex rental free and clear.
These are owned by a LLC (S-corp pass-thru/ KS) and were always owned by the LLC.
I want to get some money out - Equity Loan / HELOC. 70% LTV or even 60% LTV ok.
FICO = 800+
Have all the reserves required by the new guidelines.
We have a mortage on our primary residence.
The Loan Specialist at the Bank sent me an email saying this:
it cannot be in the name of an LLC. Fannie/Freddie simply won’t allow it. Also – was it always owned in the name of the LLC? It’s possible we could remove it and then return it to the LLC – but I will need to check the guidelines to make sure.<<<
I want to be more proactive and she is bit unresponsive atm with all the ppl refinancing, so my questions are:
a) Is she right in saying it cannot be in LLC name? I looked at the latest guidelines, it didnt say anything like that but it does seem understandable.
b) Whats the easiest way to move it under personal name and move it back to LLC? The Insurance / Leases / Depreciation etc are all under the LLC name. Any tax issues that might crop up?
c) Would like lowest rate with longest term Any other avenues I should be looking at?
Thanks in advance!