Updated about 1 month ago on . Most recent reply
DSCR Loan application
I am in the process of applying for a DSCR loan for a long term rental property through my Checkbook LLC.
The loan company I am working with wants me to fill out an application form where all of the questions are targeted on my credit, my info for collateral and my personal real estate situation. There is no mention and nowhere I can put in my LLC information. Granted, this is just an app to get pre approved, but I'm concerned that without all the correct DSCR needed information, the process will get stalled.
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#1 Creative Real Estate Financing Contributor
- Lender
- Charleston, SC
When you say Checkbook LLC, do you mean Checkbook IRA LLC, as in a SDIRA? If so, you need to make sure that your lender is aware of this. You will need a nonrecourse loan to stay compliant with an SDIRA. If your lender expects you to personally guarantee (PG) the loan, this will cause tax issues with your SDIRA. You need to get clarity on this.
- Patrick Roberts
