Personal vs. Business Loan
Hello,
I recently applied for a Line of Credit at a traditional bank to purchase another SFH rental. I currently have a SFH rental that's completely paid-off, and so I was going to use that as collateral on the LOC. However, the application was rejected because I was the personal applicant, but the collateral home was in the name of my business (which is a wholly-owned LLC). The only options the bank could give me were a business line of credit at a much higher interest rate and shorter loan term, or a personal line of credit using my personal home as collateral.
I don't want to use my personal home as collateral, but I'd also like to get the lower personal rates. I thought since my business was an LLC that's on my personal taxes I'd be able to use a house owned by that business for this loan, but apparently not. Is my only option a private loan, or do you think the particular bank I went to was more picky than others might be?
Thanks for any assistance!
Eric