DTI of newly established LLC for Loan

[Taegyun Lim]

I consider the business form of LLC vs Self-Employed to do rental business.
For now, I am leaning toward establishing an LLC to purchase and rent real estate.
In this case, the LLC won't have any income performance from the previous year (i.e., no DTI).
Can I still get a mortgage loan to purchase real estate under these circumstances?

[Matthew Crivelli]

Quote from @Taegyun Lim:

I consider the business form of LLC vs Self-Employed to do rental business.
For now, I am leaning toward establishing an LLC to purchase and rent real estate.
In this case, the LLC won't have any income performance from the previous year (i.e., no DTI).
Can I still get a mortgage loan to purchase real estate under these circumstances?

If you form an LLC you can use hard money for rehab projects or DSCR 30Y rental loans for stabilized rent ready properties. Typically we are using your personal credit score and you give a personal guarantee on behalf of your LLC. DTI, tax returns and employment checks wouldn't be a factor with these loans. We are local to the Boston area, I would be happy to have a conversation with you about our offerings! 

[Wesley Bernard]

Quote from @Matthew Crivelli:

Quote from @Taegyun Lim:

I consider the business form of LLC vs Self-Employed to do rental business.
For now, I am leaning toward establishing an LLC to purchase and rent real estate.
In this case, the LLC won't have any income performance from the previous year (i.e., no DTI).
Can I still get a mortgage loan to purchase real estate under these circumstances?

If you form an LLC you can use hard money for rehab projects or DSCR 30Y rental loans for stabilized rent ready properties. Typically we are using your personal credit score and you give a personal guarantee on behalf of your LLC. DTI, tax returns and employment checks wouldn't be a factor with these loans. We are local to the Boston area, I would be happy to have a conversation with you about our offerings! 

 Matt, do you know if this is true for other states? I'm looking at doing the same in Delaware.

[Matthew Crivelli]

Quote from @Wesley Bernard:

Quote from @Matthew Crivelli:

Quote from @Taegyun Lim:

I consider the business form of LLC vs Self-Employed to do rental business.
For now, I am leaning toward establishing an LLC to purchase and rent real estate.
In this case, the LLC won't have any income performance from the previous year (i.e., no DTI).
Can I still get a mortgage loan to purchase real estate under these circumstances?

If you form an LLC you can use hard money for rehab projects or DSCR 30Y rental loans for stabilized rent ready properties. Typically we are using your personal credit score and you give a personal guarantee on behalf of your LLC. DTI, tax returns and employment checks wouldn't be a factor with these loans. We are local to the Boston area, I would be happy to have a conversation with you about our offerings! 

 Matt, do you know if this is true for other states? I'm looking at doing the same in Delaware.

Yes, we lend in 46 states. 

[Wesley Bernard]

Thanks! I've already reached out to one mentioned on here and can handle what I need.