Just formed my LLC and ready to purchase my first property. Lender advice?

Ocala, Florida
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Just formed my LLC and ready to purchase my first property. Lender advice?

Sherry SumpterPro Member
Real Estate Agent · Ocala, FL area · Member since 2026 · 19 posts · 12 votes

I formed an LLC with my sister. I'm the realtor and she's the designer/construction expert. We are wanting to buy our first investment property this month. I have tapped into a HELOC and would like advice on the right type of loan to get. I reached out to a Credit Union who was going to prequalify me but when I said the property would be in the LLC, he said oh that will be another department with higher rates. The conventional rate was 7.5%. Any advice would be appreciated! Many thanks in advance.

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Austin ClarenceBusiness Member
Lender · Phoenix, AZ · Member since 2023 · 136 posts · 32 votes
1mo

Starting with Conventional is recommended and pivoting later on to DSCR later on as your debt to income ratio starts to exceed the 50% threshold allowed by lenders. However if the LLC is extremely important to you, you could look at doing a DSCR loan instead. Many investors will buy with conventional then switch the title to the LLC post closing, although this strategy has other pros and cons.

[email protected]650-906-2376
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  • Sherry SumpterPro Member
    OP
    Real Estate Agent · Ocala, FL area · Member since 2026 · 19 posts · 12 votes
    2w

    Thank you Kim. This is great advice!

    0Reply
  • Adam Crum
    Lender · Martinsburg, WV · Member since 2026 · 14 posts · 4 votes
    1w

    Hey Sherry, I have in house non-qm programs that allow you to close in an LLC. Let me know if you want to chat more

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    1w

    Hi Sherry,

    You might want to look into a DSCR loan if you have not already. Lenders will allow you to close in an LLC and rates are somewhat similar to what your credit union is quoting you.

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
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  • Ryan BakerBusiness Member
    Lender · Strongsville / Cleveland, OH · Member since 2026 · 130 posts · 33 votes
    1w

    Hi Sherry, congrats on forming the LLC. Most conventional loans can't close in an LLC's name, so if you want title in the LLC from day one, the usual route is a DSCR loan, which qualifies off the property's rent instead of your personal income and is commonly done in an LLC with a personal guarantee.

    Some people instead close conventionally in their personal name for the better terms and handle the LLC and insurance side separately, but run that by your attorney first. For a DSCR loan, have your articles of organization, operating agreement, EIN and a business bank account ready, and expect a larger down payment than an owner-occupied loan.

    Happy to walk through which route fits your first deal on a quick call. My direct line and email are on my profile.

    (Drafted with AI assistance.)

    [email protected]330-548-3340
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