4 Thoughts on How do you obtain a mortgage in the name of an LLC?
  1. Reply
    rhsaunders
    June 21, 2013 at 4:10 am

    You do it the same way as for an individual; apply, provide financial data, and if it is approved, sign as an officer of the LLC. But why use an LLC to own real estate? There are various tax complications, and you don’t need the liability protection — that is what insurance is for. Talk to a CPA about this before getting in any deeper.

  2. Reply
    mazziatplay
    June 21, 2013 at 4:33 am

    Fannie Mae and Freddie Mac, the major mortgage backed securities, do not make loans to entities such as an LLC, they make loans to individuals. In order to obtain theirs, which is the most competitive financing, you will need to take title as an individual for the purposes of financing and then transfer the properties into the LLC post closing.

  3. Reply
    Jill J
    June 21, 2013 at 5:00 am

    i’m not sure, but i think this site has the answer to this particular question. they’ve got lots of stuff about this anyway.

  4. Reply
    ernesto_tig
    June 21, 2013 at 5:49 am

    You’ll have difficulties with a new LLC:
    1. No financial history
    2. Purpose of LLC is to avoid financial liability, your asking a company to loan you $ $
    3. You’ll have to find a mortgagee and insurer willing to take a chance on you, either one is going to charge higher than personal rates raising you ownership costs.
    4. There are numerous tax issues, but you didn’t ask about that.

    Most people will lend you money if you put enough of a down payment. So transfer 20% down from your personal accounts and let the LLC use the money as a down payment.
    OR
    Personally sign the loan for the property and transfer it to your LLC. Make sure your insurance syncs with this and your mortgage company approves.
    I’m not sure what you’re trying to accomplish with your LLC, maybe a lawyer at a RE meeting told you scary stories and you think you’re protecting yourself, but if you own less than 4 personal properties (1-4 units) you could save yourself fees, taxes and legal wrangling by buying the properties yourself and getting an a$ $ load of insurance. Good luck.

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