Most real estate investors want to hold properties in an LLC for liability protection. But can you actually get a mortgage in your LLC? Yes — with the right lender and the right loan program. Here’s how it works.
Why Conventional Lenders Won’t Lend to LLCs
Fannie Mae and Freddie Mac require the borrower to be a natural person (individual), not a business entity. This disqualifies LLCs, LPs, corporations, and trusts from conventional financing. If you want to hold in an LLC, you need a non-conventional lender.
Loan Programs That Lend to LLCs
DSCR Loans (Most Common for LLCs)
DSCR lenders regularly lend to LLCs, LPs, corporations, and trusts. The underwriting is the same whether you’re an individual or an LLC — they’re qualifying the property, not the entity. Most require a personal guarantee from the primary member/owner.
- LLC, single-member or multi-member — both eligible
- Series LLC accepted on some programs
- Personal guarantee typically required
- Same rates and terms as individual borrowers
Hard Money Loans for LLCs
Hard money lenders are entirely asset-based — they lend to whoever controls the property. LLCs, corporations, trusts, and foreign nationals all qualify. Personal guarantee may or may not be required depending on the lender and deal.
Commercial Loans for LLCs
If your investment property is commercial (5+ units, office, retail, industrial), commercial lenders routinely lend to LLCs and are often more comfortable with entity borrowers than individual ones. Commercial loans typically require a personal guarantee regardless.
What LLCs Need to Qualify
When applying for a DSCR or hard money loan in an LLC name, have these ready:
- Articles of Organization (or Articles of Incorporation)
- Operating Agreement showing member/manager structure
- Certificate of Good Standing (Secretary of State, current)
- EIN (Employer Identification Number)
- Personal ID and credit pull for the guarantor
- Proof the LLC is authorized to hold real estate (most OAs include this)
Should You Use a New LLC or an Existing One?
Lenders don’t care how old your LLC is — they’re qualifying the deal, not the entity’s history. A new LLC formed the day before closing is acceptable on DSCR and hard money programs. You don’t need 2 years of business history.
The “Due-on-Sale” Clause Warning
If you have a conventional loan in your personal name and transfer the property to an LLC after closing, the lender can invoke the due-on-sale clause and demand full repayment. This doesn’t happen often, but it’s a real risk. The safe path: use an LLC-friendly DSCR or hard money loan from the start, rather than transferring later.
Ready to purchase or refinance in your LLC? Get a free quote — tell us the LLC name and state of registration, and we’ll confirm which programs are available.