BP Lenders: Add myself as co-borrower with my LLC?

[Kiley N.]

Two questions:

Assuming my credit qualifies and the SFR property cash flows at an acceptable level:

1. Would it be advantageous for loan qualification purposes to become a co-borrower on a mortgage with my LLC (as opposed to a guarantor)?

2. Are there lenders that would do 80% or higher LTV on 30 yr fixed mortgages with my LLC and myself as either a personal guarantor or a co-borrower on the loan?

Thank you very much!

[Greg Scott]

Any loan to an LLC is likely to be a commercial loan. Interest will be higher and they normally come with balloon payments. If you qualify anyway, you would probably be better off just getting conventional loan in your own name.

Another concern is that co-borrowing with an LLC could be the equivalent of co-mingling funds, so you run the risk of making the LLC useless anyway. I'd check with your attorney.