DSCR Close as individual

[Nandish Desai]

My wife and I bought our first condo in our own names. We recently sold that condo to 1031 exchange. We had bought the condo with a conventional mortgage in our individual names. For 1031 exchange, we can't close the new property in a LLC due to tax purposes. Are there lenders that do DSCR but close in individual names? Confused because DSCR by nature looks at the income the property is generating and not your personal income or credit I believe.

[Robin Simon]

Quote from @Nandish Desai:

My wife and I bought our first condo in our own names. We recently sold that condo to 1031 exchange. We had bought the condo with a conventional mortgage in our individual names. For 1031 exchange, we can't close the new property in a LLC due to tax purposes. Are there lenders that do DSCR but close in individual names? Confused because DSCR by nature looks at the income the property is generating and not your personal income or credit I believe.

 Like other posters have mentioned - it will likely vary by lender - but generally most states will be OK with either Individual or LLC but there are a handful of states that due to various regulatory interpretations will require a LLC (or require a LLC to have prepayment penalties on the loan structure)

Borrower = Individual or Entity		AL, AK, AR, AZ, CA, CO, CT, DE, DC, HI, ID, IL, IN, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, NE, NH, NJ, NM, NY, NC, OH, OK, OR, PA, SC, SD, TN, TX, UT, VT, WA, WV, WI, WY
Borrower = Entity only		GA, FL, IA, MT, RI, VA

(1-4 Units) Prepayment Allowed Vested Entities Only

IL, NJ