Personal vs. LLC

[Carlos M.]

Hello Everyone,

Currently I am looking to refinance an Investment property I own. The question I have is should I borrow through the LLC or borrow through my personal credit?

The reason why I ask is because I have done both in the past and I feel that when borrowing under your personal name the banks tends to offer better loan products in terms of interest rates, amortization, and points. However on the flip side borrowing personally directly impacts your credit score whereas having the loan under an LLC keeps the loan from impacting your personal credit score which helps keep you more attractive as a borrower. Additionally, when borrowing funds through an LLC it seems like the banks make the process a lot more difficult and scrutinizes everything from articles of incorporations, to leases agreements, tax returns, k1's etc.

Any experience or advice in regards to this matter is truly appreciated – THANKS EVERYONE!