Let’s say I have 10 loans under my name/ credit and lenders are not allowing me to take on any more mortgages. Now I heard that I can Re-finance all 10 of those loans under an LLC and they will be out of my name and thus allow me to take on another 10 mortgages. Has anybody done this??
I have not done it for myself but I have done it for a customer. We used patriot Bank in Georgia. We rolled in 5 houses.
Limit reduced to 4 as of Aug. 1.
http://www.freddiemac.com/sell/guide/bulletins/pdf/bll042208.pdf.
I heard Fannie Mae is following suit but haven’t seen anything official.
Christopher… in your scenario, was a personal guarantee required by the individual when doing the refi in the name of the LLC ? If so, does providing a personal guarantee on a loan not impact what’s shown on your credit report ?
The loan to the LLC was made without a personal guarantee however the customer is self-employed and provided tax returns proving that his business could support the payments. The problem nowadays is that investors wants to start an LLC on Monday morning and then start looking for loans on Tuesday morning. They don’t realize that banks want to see proof that the LLC can support the loan payments. Just having an LLC does not mean you have income.
Right. So, with BlueMoon’s approach, if the LLC is not mature and a personal guarantee is required, my guess is that it won’t help with getting around the new property limit rules since a credit report would be run on the individual providing the personal guarantee and the new loans would still show up on the individual’s credit report.