Closing Mortgage Under LLC Versus Individual Name Of Borrowers

Closing Mortgage Under LLC Versus Individual Name Of Borrowers

This BLOG On Closing Mortgage Under LLC Versus Individual Name Of Borrowers Was PUBLISHED On March 16th, 2019

Closing Mortgage Under LLC is not allowed on primary owner-occupant homes.

• However, Closing Mortgage Under LLC is allowed on investment properties
• Many real estate investors have properties under their business Limited Liability Company’s (LLC) name
• Many need to do a 1031 tax-deferred exchange
• 1031 tax-deferred exchange allows investors to defer paying capital gains tax if they sell an investment property at a profit and roll over all the proceeds with a like or higher priced investment property

If the property they sell is under an LLC, the new property needs to have a closing mortgage under LLC. On this blog, we will discuss Closing Mortgage Under LLC versus under an individual borrower’s name.

Types Of Investment Property Closing Mortgage Under LLC

Not all lenders will allow closing mortgage under LLC.

• Gustan Cho Associates at Loan Cabin Inc. allows non-owner occupant investment property closing mortgage under LLC
• Rental real estate can close under LLC
• Property flippers can close fix and flip loans under LLC
• Developers who are full-time investors on fix and flip properties often benefit closing mortgage under LLC
• This is because many fix and flips are short-term interest-only loans and have a lot of activity

Investment new construction loans can also close under Limited Liability Company.

Most Popular Investment Loan Programs

Most real estate investors have single family homes as rentals.

• Others have two to four unit multi-family homes as investment homes
• These investors keep their properties under a Limited Liability Company to protect personal liabilities in the event they get sued
• Most investment loans offered at Gustan Cho Associates at Loan Cabin do not require income tax returns
• We offer conventional investment loans, non-qm loans, and bank statement loans for self-employed borrowers

Please contact us at Gustan Cho Associates at 262-716-8151 for more detailed information on our investment loan programs.

What Is Required In Closing Mortgage Under LLC

To get started with closing mortgage under LLC, one of our experienced loan originators will request certain mortgage docs.

Here is the basic documents required for closing mortgage under LLC:

A Loan Originator can put together a list of documents required for processing and underwriting. Here is a general list of documents required for the LLC or corporation:

• Articles of Organization or Certificate of Formation
• This paperwork has the state where the LLC was filed and a file number
• Contains the name of the LLC
• Contains names and address of its members and/or managers
• Has the name and address of the registered agent of the Limited Liability Company
• An operating agreement of an LLC needs to be provided
• The operating agreement is a legal document that names members, the title of members, ownership percentage, and duties
• W-9 form needs to be completed which can be found on the IRS’s website
• The organizational chart is for a borrowing entity which includes all members of the LLC AND ownership interest in the company.
• The organization chart should include the legal name of the LLC, EIN, and the address of the principal place of business

These are required when you have a property that is located in a different state than the company it is organized in.

Qualifying For Mortgage With Direct Lender With No Overlays

Home buyers or real estate investors who need to qualify for a mortgage with a direct lender with no overlays can contact us at Gustan Cho Associates at Loan Cabin Inc. at 262-716-8151 or text us for faster response. Or email us at gcho@loancabin.com. We are available 7 days a week, evenings, weekends, and holidays.