Two Partner LLC for Rental Property. How to get a mortgage

3 Replies

Me and my wife started an LLC to hold our rental properties. So two partners.

I know it is not possible to get a mortgage for an LLC that is only few weeks old. So we are thinking of personally guaranteeing the mortgages at least for a 2-3 year period.

Both of us can qualify for a loan independently. Is it possible for only one of us to sign a personal guarantee for the mortgage in the name of the LLC?

That way we can avoid risking everything.  If both the partners have to guarantee the mortgage, we are basically exposing all out assets. 

You can get a mortgage for an LLC but it'd have to be a commercial one. I believe that if you are both owners of the LLC, they would require both of you to be on the mortgage. I am no mortgage expert, nor am I a loan officer, but I suggest you call a few local/regional banks and see what they have to offer. Or you can always get it in your name and transfer it to the LLC. But that comes with the minute risk of the loan being called due.

Originally posted by @Jerome Sarath :

Me and my wife started an LLC to hold our rental properties. So two partners.

I know it is not possible to get a mortgage for an LLC that is only few weeks old. So we are thinking of personally guaranteeing the mortgages at least for a 2-3 year period.

Both of us can qualify for a loan independently. Is it possible for only one of us to sign a personal guarantee for the mortgage in the name of the LLC?

That way we can avoid risking everything.  If both the partners have to guarantee the mortgage, we are basically exposing all out assets. 

If you want to buy a 1-4 unit property with a 30 year mortgage you will need to title it in your personal names. Could be just yours, just hers, or both but it can't be in the LLC.

I buy houses in my LLC name all the time. We bought a house days after formulating our LLC. I sign my name on the line that has my name below it and I sign my name on the line that had my LLC name below it lol. We put all of our purchase agreements in with our LLC name.

My wife and I put it in our operating agreement that she is a silent partner, her signature is not binding on any contract, and I have the authority to sign in her place. ( she no longer has to sign anything or show up to closings).