Mortgage under LLC

[Tal P.]

Hi,

I'm looking for banks/credit unions/Mortgage brokers that can help me to get a mortgage under LLC.
I'm planing to buy few properties around Boston (MA) and i'm trying to figure out how to levrage my money and take mortgage for each unit/LLC?

Thank you,

Tal 

[Ann Bellamy]

I'm afraid you've been given some well meaning but incorrect information:

• "Most banks will not loan to an LLC because of fraud."  This is incorrect, most banks do lend to LLCs but you are simply talking to the wrong department.  Don't ask for the mortgage department, ask for the commercial lending department.  An entirely different product with different criteria and different terms.  You won't generally find a 30 year fix mortgage here.
• "you can only get non-recourse loans in a LLC."  Also incorrect, having a non-recourse loan means you don't need to sign a personal guarantee.  Almost all commercial lenders will require a personal guarantee, non-recourse is a specialty product for either when your SDIRA is borrowing the money and you CAN'T sign a personal guarantee or risk blowing up your IRA, or when you are big enough that you can negotiate non-recourse with larger commercial banks and lenders. So far from only getting non-recourse when borrowing in an LLC, it's unlikely you'll find a non-recourse loan.
• " you can get non-conforming or hard money loans that will put the mortgage under an LLC. Expect to put 25%-35% down based on your real estate experience and credit and also expect to pay higher origination fees at closing."  Well, yes, you can, but you don't need a non-conforming or hard money loan, you simply need a commercial loan.  But yes, expect to put 20-25% or more down.  Do not expect a 30 year term, expect 5 or 10 years.  But not necessarily higher origination fees.  I've just been approved for 2 commercial loans and each one was 1/4 point.  
• The problem is you are talking to the residential lending department. They don't speak LLC. Talk to the commercial lending department. They do.