Refinancing, Credit Score, LLC

Hello, good day to all that read this post:

My business partner and I are considering cashing out 100% percent of our equity at the completion of a rehab. [If we cannot find a buyer within two months of the completed rehab. I have read that if an individual’s credit score is low, a lender may not allow you to cash out 100% percent of your equity. My inquiries are the following:

If my partner’s credit score does not suffice in order to cash out our equity completely, and his name is on the mortgage or note, can or will a lender under certain circumstances or loan programs allow the use of my credit score [which may be slightly higher than my partner] especially if the property is held in an LLC?

Can another option be that if the property is held in an LLC, and one business partner guarantees the mortgage/note via a personal guarantee, would it make sense to transfer the mortgage from partner a to partner b for the period of two months {the partner with the higher credit score}, then transfer the mortgage back to partner a?

Getting 100% cash out on investment properties can be possible.

Are you both owners of the LLC? I believe you mentioned he is on the mortgage himself.

It’s possible that he may be able to quit claim you on to the title then you could cash out.

Ben nailed it.

Thank you 4EEM and Investment Loans for your feedback. To Investment Loans, we are owners of the LLC. The LLC is also managed by a manager. Would the manager-managed structure of the LLC influence his ability to sign a quit-claim deed to me and allow me to perform the 100% cash-out? Thanks again for the information.

Your welcome, my pleasure!

I am almost certain that you can be quit claimed on to the title. Then a cash out refinance can be completed. The lender who does the loan will have to have a no seasoning policy.

There are several variabled that would determine if 100% is possible.

Thanks Investment Loans for providing additional information in regards to the refinancing topic. I really appreciate your assistance. Have an excellent day.