How does an LLC apply for a mortgage?

2 Replies

Hey Guys! 

My partners and I (3 total including myself) run an LLC where we have historically purchased properties in full. We are considering purchasing new properties by financing them. How exactly does an LLC source a mortgage? Is it even considered a mortgage at that point or a small business loan? Would it be like applying for any conventional mortgage but all three partners have to submit info for approval?

Thanks!!

an LLC can get a loan, but it's more likely that a lender is going to require the principals of the company to apply for the loan. Best to talk to a mortgage broker who can bring in your application and shop it to a couple different lenders to see who would do a business loan.

Shouldn't be too hard to find a lender to make a loan to an LLC. You should, however, expect to sign recourse individually, meaning the bank can come after each of you in the event of default.