How does it work with securing a mortgage loan under an LLC? Who's credit do they use if their is more than one person under the LLC and is it possible to still house hack?
You will apply for the mortgage loan as individuals on the same application. Each of your credit will be considered. If there are two of you, the lender will use the lower credit score between the two of you. You will need to inform the lender of your plan to transfer the loan into your LLC, so that they sell the loan to Fannie Mae and not someone else. A few months after closing (not exactly sure how long, but a title attorney should know this), you can transfer the title into your LLC.
You can title a piece of real estate in an LLC and still be the primary borrower in your individual capacity on the deed of trust or mortgage. The problem is that banks don't think outside of the box. In reality, having an LLC protect their collateral is in the bank's best interest too.
If your property is titled to an LLC you can obtain a commercial loan. The rate will be higher than a personal loan. You or both owners will probably have to give personal warranty and some lenders will pull your personal credit score while some won't.
As commercial loans are usually kept in house by the lender, each lender has its own requirement and you will have to shop around to find the lender that will match your need.
If you plan to house hack the "normal" way, then no you cannot close or have title in a LLC. Homestead properties in a LLC is a no-no.