Getting Mortgage Under My LLC

[Donnell Jackson]

So i recently started my own LLC that I plan taking mortgages on my rentals with. I understand that the mortgages will still be under me ultimately but how do I go about applying for one under the name of my company? Is it the same as applying for one as if I were getting one for my primary residence? Additionally do I have to do the mortgage as an investment property if I were to purchase through my LLC? That question is aimed at trying to avoid putting down as much money as I can. The lenders I have looked at so far require a 20% down payment on investment properties.

[Craig Hopp]

If you ask me, there is no point in having an LLC if you still have to put the mortgage in your own name. That defeats the purpose of the LLC which is supposed to separate the companies assets from your own. If the house is in your name then all of your personal assets are at stake rather than just those of the business.

I had to shop around until I found a smaller bank that would extend credit in the name of my LLC. The larger national banks just aren't that interested in working with small real estate investors. I still had to provide a personal financial statement and income taxes to the bank, but all (7) of my properties are owned by my LLC.

Whether you have the loan in your own name or the LLC, banks will typically require more equity in the deal if it is not your primary residence.