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Updated about 1 year ago on . Most recent reply
![Rob Saxelby's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/1715378/1738370059-avatar-robs199.jpg?twic=v1/output=image/cover=128x128&v=2)
LLC and Mortgage
Hi all,
I need some advice.
I'm looking to purchase a long term rental in my home state of Arizona. I want to protect my assets and use an LLC. I keep getting conflicting information on whether you can put the LLC down on the mortgage or if it has to be me with my other investors. Any advice is greatly appreciated.
Thanks in advance!
Rob
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I just want to make sure I understand your question. Are you asking if you can borrow on the name of the LLC? Yes, you can. The LLC can own the propety and it can be the borrower on some mortgages. Conventional mortgages do not allow an entity, your LLC, to be the borrower, but most (not all) DSCR, Flip, and Investor Construction loan programs require it. The owners of the LLC will need to also be "guarantors", meaning they personally guaranty the loan when the LLC borrowers. Yes, I know, there are exceptions to this such as borrowing in an IRA that is owned by a SDIRA, in the case of a publicly-traded company, a non-profit, some CMBS loans, etc. Also, each lender will vary on which owners need to borrow (usually based on LLC ownership percentage). The LLC will be the borrower and owners of the LLC will be Guarantors. You'll need to provide the lender your Articles of Organization, the executed Operating Agreement, your IRS SS-4 letter showing yoru EIN number, and usually the Certificate of Good Standing (called different things sometimes in different states). I think that is what you were asking. I do hope it helps.