how many mortgages can you have in your personal name?

How do I change rental properties that are still mortgaged to our LLC

where is the best place to refinance a mortgage?
unfortunately a big bank is now in control of 5 of our mortgages. we find them unfair and heartless. what can we do? we want a reliable, smaller institution. what about a credit union?

welcome phoebe,

you can use a quit claim deed in order to transfer your rental properties to someone else. the new owners can contact any local lender in order to get a mortgage refinance. the banks which presently control your mortgage can also help them in getting a refinance. if the new owner wants to use a credit union, then he or she will have to be the member of that credit union.

But Adonis, we're not talking here about a new owner - Phoebe simply wants to transfer title to "our LLC" (hers) for protection. She will still be the borrower. However, whoever the lender is currently won't be happy to learn of such a transfer, as it constitutes a transfer of the property, not simply a change in name. Also, the vast majority of lenders aren't interested in lending to an LLC, though some will allow it as long as the principals are also signing documentation personally.

Credit unions have typically been more open to suggestion when it comes to multiple properties, and other types of ownership; but I believe that has changed substantially in the last few years. You'll find most CUs now participate in the secondary market, even if merely through a service. Fewer and farther between are the credit unions whose mortgage practices are individualized.

George could you please answer this.... we own 5 properties. One outright and 4 with mortgages. We are considering purchasing a 6th property. 3 of our properties are rented, one primary residence and 1 vacation home. The 6th property would be seasonal rental and some owner use. what is the best way to proceed? Should we move everything into an LLC (separate or one LLC)? Should we try for a blanket mortgage? Should we try to get a private loan? Our current mortgages are all under 5.5% so a blanket loan may raise those rates... is it worth it? Credit scores around 800.

Well, my first inclination is to tell you that blanket mortgages are pretty much extinct, I believe. That may not be a true statement everywhere in the country, but the issues involved in tieing in one loan with a variety of properties would be heinous - for lenders and borrowers both, I believe.

So I'd forget that as an alternative if I'm you. Inasmuch as you are unlikely to find a typical lender who'll consider taking on your sixth property, a private lender may well be your best bet. Unfortunately, there you'll find that such a lender is likely to look for a higher return on investment than institutional lenders who kowtow to the secondary markets.

Frankly, I'm not conversant with LLC establishment and the protection that you might afford yourselves with that. The challenge, nevertheless, is obtaining a mortgage to begin with. I don't know that LLC ownership is better or worse in this scenario - again, with a private lender you stand a better chance of actually obtaining funds, I think.

For the purpose of full disclosure, I have to tell you that I've never been involved in the private sector as far as lending is concerned, having been "institutionalized" all my working days. I may have to take those quotes off one day, too.

Contact your CPA, your attorney, realtor(s), others you may know who are in similar waters, and you'll probably be given a list of likely (potential) financing agents for your quest. I'm afraid that's my best take on things at this time.

We have a credit score of over 720, own eight properties, of which 4 are owned free and clear and 4 have mortgages. Assets at 4 times the outstanding mortgage balances and we CAN NOT get another mortgage anywhere. We have been told four is the limit.....period.

Hi jec!

Welcome to forums!

It is true that there is a limit on the number of properties on which you will be able to take a mortgage. Though you have a credit score of 720, as you already have a mortgage on 4 properties, you won't be able to take out a new mortgage.

Feel free to ask if you've further queries.

Sussane

Yaa, its better to limit it for 4, if we try do to take more it will lead to follow rules and regulations.

Aram, can you elaborate on that comment? "It will lead to follow rules and regulations" would seem to be the perfect solution to mortgage fraud, mortgage crises, mortgage confusion, and a whole host of other mortgage-related topics.

Don't you think??????

I had 1 personal mortgage, 4 investment mortgages, and 1 property owned outright and was told over and over again I couldn't refi because of the limit.

Then I found a local bank group (FirstBank of Colorado) that finances their own mortgages and had no problem w/ the refi (I did 2 last year w/ them). Their underwriting is strict: 15 yr max, high credit score (not sure how high, but need upper 700s) and at least 25% down. But I got a good rate.

Good luck; it was a needle in a haystack search.

Hi Guest,

It is good to note that you found such a bank. However, most banks follow the Freddie Mac-Fannie Mae rule of 4 properties and mortgages.

Thanks

JKS - just as you found a lender willing to work with you, there are lenders throughout the country who'll consider the same. They're not easy to find, of course, but I will continue to opine that credit unions and smaller, localized banks are the financial institutions most prone to offering services such as you encountered.

They aren't many, but when you find one, you'll know and usually be pleased.