Avatar's Blog
» Owner Occupied Residential Property
Avatar Financial Group can fund owner occupied residential properties in the states of Washington and California. In other states, if the borrower holds his residence in an LLC or similar corporate entity and the funds are to be used for business purposes, Avatar may be able to fund a loan.
In the event that a borrower is buying a residential property through a corporate entitty, the loan is considered a commercial loan. If the borrower is refinancing the property, a substantial majority of the cash out funds must be used for business purposes.
If you are considering forming an LLC or other corporate entitty and quit-claiming your residence into that entity, discuss the short and long term ramifications with your attorney and/or CPA before making the move. It may advantageous in the short term, but difficult to manage or disadvantageous in the long term. You will only be able to determine that if you know all the facts in advance.
