Does an LLC have mortgage restrictions?

5 Replies

I understand that as an individual, to some banks I am restricted to have either 4 or 10 conventional mortgages under my name. But what about a business? If I have an LLC, do those numbers still apply to my real estate business?
Originally posted by @Samuel Coicou :
I understand that as an individual, to some banks I am restricted to have either 4 or 10 conventional mortgages under my name. But what about a business? If I have an LLC, do those numbers still apply to my real estate business?

Hi Samuel,

Commercial lenders are LLC friendly and many will not cap the number of properties.

Commercial loan rates/terms can't touch residential loans, however.

Thanks for the quick response. I understand the restrictions between commercial lenders, and conventional lenders. But what I really want to know is if a conventional lender has the same cap number for businesses as well.

Originally posted by @Samuel Coicou :

Thanks for the quick response. I understand the restrictions between commercial lenders, and conventional lenders. But what I really want to know is if a conventional lender has the same cap number for businesses as well.

Generally speaking with Fannie/Freddie loans, an LLC might hurt you but will never help you. That applies here as well.

Your LLC has no cap on number of commercial loans. Commercial loans will be higher percentage than personal loans, and you will find most banks will only lend in the 20 year or shorter amortization period, and will also build in "calls" at an earlier time. Commercial loans are much easier on the paperwork and usually much faster to close. Commercial loans will most of the time require personal guarantees.