Does Closing in an LLC Affect Personal Credit or DTI?

[Michael Doherty]

I am refinancing a BRRRR that is nearly complete. I purchased in an existing LLC I had and would like to close in the same one. I always thought that closing in an LLC meant that it wouldn't go against your personal DTI or credit. I am getting mixed answers from various lenders/ seasoned investors. Perhaps it's the underlying loan product that makes the difference. Does anyone have any more clarity on this?

For clarification, I want to close in an LLC but DO Not want it to affect my personal DTI or credit. Thank you.

[Stephanie P.]

Originally posted by @Michael Doherty:

I am refinancing a BRRRR that is nearly complete. I purchased in an existing LLC I had and would like to close in the same one. I always thought that closing in an LLC meant that it wouldn't go against your personal DTI or credit. I am getting mixed answers from various lenders/ seasoned investors. Perhaps it's the underlying loan product that makes the difference. Does anyone have any more clarity on this?

For clarification, I want to close in an LLC but DO Not want it to affect my personal DTI or credit. Thank you.

I can only speak to the lenders we use.

• They do require a personal guarantee.
• They pull credit on you in the beginning and right before close to make sure you didn't file BK or get foreclosed on
• The loan does not show up on your personal credit report because the loan is to the LLC, not you.
• The loan does not affect your DTI because it is made to the LLC, not you.