Is your DTI ratio affected by placing properties in an LLC?

[Evans Wright]

BP Team,

I have a few multifamily properties and as many of you may know it affects your Debt To Income ratio which makes it more challenging to secure a conventional loan. Question: If I switched my properties to an LLC or purchase any properties henceforth under an LLC will it affect my DTI?

Love to hear the thoughts of those who are familiar with LLCs.  Thanks

[Ashish Acharya]

Originally posted by @Evans Wright:

BP Team,

I have a few multifamily properties and as many of you may know it affects your Debt To Income ratio which makes it more challenging to secure a conventional loan. Question: If I switched my properties to an LLC or purchase any properties henceforth under an LLC will it affect my DTI?

Love to hear the thoughts of those who are familiar with LLCs.  Thanks

Please talk to your lender but this is how it works (generally for qualifed loans). 

1) You will not be given any credit for profit for the properties in the LLC

2) You will be dinged for the losses for the LLC to the extent of PITI