At what point do banks treat me as a company instead of a person?

[J. Pablo Fernández]

Hello,

I have an LLC that owns another LLC that owns a property outright. It's cashflowing nicely every month and yet, if I want a mortgage, the banks ask for my credit record. At what point do they start treating me as a business instead of a person, and look at my books instead of my credit record?

The reason I ask is because I don't have a credit record, I live abroad, I'm not a US person, so, this is completely hindering my ability to BRRRR. I'm trying to get creative with the financing but if I can't get a bank to give me a mortgage at some point, I'd have a lot of trouble making this work.

[Frank Chin]

The problem is most banks that do mortgages sell their mortgages to loan buyers, Fannie Mae, Freddie Mac, other banks. One mortgage of mine of was sold to another bank 3 months after I got the mortgage, then sold to a 2nd bank a year later, and finally a loan service company handled it with the mortgage owner only identified by it's ID#. So I made payments first to the originating bank, then bank one, bank two, and finally an unidentified investor, all in a period of two to  three years.

The requirements of the banks are really the requirements of the loan buyers, mainly the borrower has to meet certain requirements, such as credit history, years on job etc. else the loan buyer will reject the mortgage. 

Banks don't want mortgages stuck on their books, they make more money selling the loans, pocketing the points to make other loans. Organizations like Fannie Mae buy the mortgages then bundled them where investors can buy them on the market as Fannie Mae unit trusts. For investors, they're touted as safe investments. I myself bought them, the trusts, some bundled at $25K, some in smaller units. 

Some years back, I heard of incidents where mortgages not meeting requirements were bought, bundled and then sold, and I wondered about the safety of these unit trusts. That was when we had the banking crises, the Federal government stepped in, poured billions of dollars in to save the banks and keep mortgages rolling. Appears things are now back to normal.

After all of this, I doubt they will entertain the idea of granting mortgages to people who live outside the country, no credit report history in the U.S.. Just too risky.

There are portfolio loans where banks keep the loans on the books that they can't sell. Small country banks keep it as an investment. I have several of them where REO banks sell properties at auction, then themselves provide the loans. Auction sales involves property sold as is, has title issues, and loan buyers reject them. Years ago, there are also "no doc" loans which I got, then banned, and now making a comeback. Back then, I had to call around for mortgage brokers to get leads on where to get these mortgages. Then, I started and owned businesses where I don't fit the normal credit profile and DTI.

So get hold of some mortgage brokers and see what's out there.