Personal Mortgage & needing LLC coverage

[Haley Henderson]

Hello! 

I was wanting to see if anyone has run into this problem and see if there was any feedback or suggestions. 

My fiancé and I are in the process of purchasing our first investment BRRR property and we are using a conventional loan through our local bank. The program that my fiancé got his pre-approval with our bank (I own our primary residence so we wanted to get a loan in his name) is designed and offered for the purchase of a primary residence. With that being said, we are not allowed to put the mortgage in under our LLC name, it has to be the home owner name for this particular program with our bank.

That being said, has anyone run into this and if so, how were you able to protect yourself through your LLC when you start renting your property? Is there a way we can still use our LLC even though the mortgage is his name and not the LLC?

I understand I need to contact an attorney or CPA, but just wanted to ask on here and see if anyone else had run into this. 

Thank you. 

[Luyen Nguyen]

Quote from @Haley Henderson:

Should we just do an Umbrella Policy and not worry about the LLC?

Hello Haley, from all the information that I've gained over the months made me come to a realization that LLC doesn't protect you for anything. So, I all my purchases are conventional under me or my wife's name. After I close on a couple of more property, I'll probably end up getting an umbrella.

I also spoke to a local lender and he works with plenty of investor and tells me majority of them purchases an umbrella over an LLC. In addition, he also told me it was cheaper when it came to tax time.