Can you get mortgage on llc

3 Replies

Hi, I'm Casey from Colorado.

I currently own a vacation condo that I rent on a short term basis. (approx 150 days a yr)

I run the rentals as an llc for everything, but I never got around to makeing the llc the owner of the actual property (is it quit-claim or quick-claim?)

So I want to get a mortgage on the property (i currently own it free and clear) but I'm assuming I should do the quick claim first and get the property to be owned by the LLC. Will that affect my ability to get a mortgage?

I'm getting the mortgage to buy another investment property.

casey

Originally posted by "caseynshan":
Hi, I'm Casey from Colorado.

I currently own a vacation condo that I rent on a short term basis. (approx 150 days a yr)

I run the rentals as an llc for everything, but I never got around to makeing the llc the owner of the actual property (is it quit-claim or quick-claim?)

So I want to get a mortgage on the property (i currently own it free and clear) but I'm assuming I should do the quick claim first and get the property to be owned by the LLC. Will that affect my ability to get a mortgage?

I'm getting the mortgage to buy another investment property.

casey

Honestly, it's a LOT harder to get a loan if it's titled to an LLC. Your available pool of lenders and loan programs goes from 20 to 4. Those are made-up numbers but you get the drift.

Casey,
The term you're looking for is quit claim. Yes, that will impact you ability to get a mortgage. I'd talk to prospective lenders before changing the deed.

Jon

Being in an LLC does make it more difficult to get a mortgage, and you would probably have to personally guarantee it anyway. I would also recommend using a warranty deed or a special warranty deed rather than a quit claim if you decide to transfer title. Quit claims, in at least Texas, are worthless and are not even considered a valid transfer of property. A quit claim and a warranty deed take the same amount of time and effort to do, so I'd recommend doing the warranty deed.