I need to transfer a convential mortgage, to a LLC, but the consumer service guy at JP Morgan Chase said I can’t do this, b/c it is a convential loan and not a FHA or VA loan. The credit quality won’t change b/c I own the LLC any help is much appreciated!
FHA and VA loans are conventional loans, too.
The real problem here is that your loan on your property is a “consumer” loan. Consumer loans are made to individuals using underwriting guidelines appropriate for consumer loans.
An LLC, on the other hand, is a business entity. Business entities get commercial loans which are made under a different set of underwriting guidelines than the consumer loan. Often these loans have higher interets rates than the consumer loan, too.
This is the more likely reason that your lender is saying no.
By the way, you don’t have a mortgage to transfer. You gave the lender a mortgage on your property along with your personal guarantee for the loan. You give a mortgage to get a loan. You accomplish a change of ownership through a transfer of title (deed) to the property.