Apply for mortgage with LLC

[Lily You]

Hi all,

I got pre approval letter from my lender under my name. But now I’m trying to set up a Llc and would like to apply for mortgage with the Llc.

my questions are : what type of mortgage can I apply for with Llc, is it generally higher rate? How difficult is it to apply for mortgage with Llc? 

Thank you so much! 

[Mordy Chaimovitz]

My understanding is that a conventional agency loan cannot be issued under an llc. 

What you can do is

purchase the property under your name. 

set up an llc with only your name in it

then do a quit claim deed to transfer title into the llc. (This is legal)

the mortgage will stay under your name. 

However this course of action is not recommended for for a few reasons

1. The llc wont offer you absolute protection of you personal assets from liability in case of a law suit. 

2 if you decide to refi you will need to switch the asset out of the llc back into your personal name.

what is generally recommended in the case of a few small properties, is very good insurance coverage. 

(Just  reminder that I am not licensed to give legal or financial advice, I am only repeating what I have heard on this topic from others)