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Author Topic: Getting a Mortgage For LLC  (Read 5756 times)

Offline zarnaj02

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Getting a Mortgage For LLC
« on: October 30, 2008, 08:16:18 am »
I am contemplating on creating an LLC with some relatives to buy and hold property.  Currently when you apply for a mortgage, the lender checks your employment, income, assets, etc.  Does anyone have any experience getting a mortgage for their LLC instead of themselves?  Are the requirements different?  Let's say there are three people in the LLC and all three currently have rentals.  They get together and put in all the rentals under the LLC.   All three also have other jobs.  The LLC owns 5 properties.  To calculate my income would they look just at the cashflow of the 5 properties, or would they also include income that each person has?  And the same question goes for the debt- would they pull everybody's individual credit report and count that debt?  Any help or suggestions would be appreciated. 

Offline Investment Loans

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Re: Getting a Mortgage For LLC
« Reply #1 on: October 30, 2008, 09:34:57 am »
If your business is just starting out the owners will need to personally guarantee.  So the bank would look at the cash flow the property, personal credit, and global debt service for all income and all liabilities.  After a few years the personal guarantees could be dropped.
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