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Scott Chung, Home Buyer in Austin, TX

How to structure an investment property when you need financing and this is your first property? Will Lenders finance to a newly created LLC?

Asked by Scott Chung, Austin, TX Wed Sep 21, 2011

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William Chu’s answer
Scott, almost all "residential" mortgage Lenders lend only to individuals, not a LLC. I suggest you reach out to a local commercial, business Banker who may consider commercially lending to your new LLC. This said, typically business Bankers will lend to your LLC based on commercial rates + terms.
0 votes Thank Flag Link Wed Sep 21, 2011
Yes lenders will finance a newly formed LLC, it does not have to be structured any specific way, the sales contract should be written with the LLC as the buyer and as long as you have the proper documentation for the LLC you are OK. We offer loans for investment properties if you are still seeking financing.

John Broussard
Newbridge Home Loans
713-777-9996 Ext 103
0 votes Thank Flag Link Wed May 27, 2015
If you have excellent credit, you may be able to obtain a loan for your LLC in the name of the LLC. However, the lender will require that you & the other LLC Members sign personal guarantees.
0 votes Thank Flag Link Wed Sep 21, 2011
Due to the fact that your LLC is new and has little earned income and/or credit history a lender will probably not provide financing. However, if you are able to be approved for a loan personally you may then transfer the property to be held in your LLC in order to limit your own personal liability.
0 votes Thank Flag Link Wed Sep 21, 2011
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