DSCR Loans for an LLC: How to Borrow in Your Company's Name

Yes, an LLC can get a DSCR loan. We lend to LLCs as well as to individual investors, and closing in a company's name is routine on DSCR loans. Because the loan qualifies on the property's rent rather than on a person's income, there's no pay stub that has to match a borrower's name.

Investors use an LLC for a few reasons: to keep rental property separate from their personal finances, to hold property with partners, and to keep investment loans off the count of personal mortgages that limits conventional borrowing. Whether an LLC is right for you is a question for your attorney and accountant. Whether an LLC can borrow from us is simple: it can.

A new LLC can get a DSCR loan. Lenders generally don't need the company itself to have a track record, because the property qualifies the loan. What the LLC does need is to exist: it should be formed, registered in the state, and in good standing before closing, with its own EIN.

Many investors form the LLC for the specific purchase. If that's your plan, start the paperwork early so the formation documents are back from the state before the closing date. A loan officer confirms what we need for your file on a short call.

Borrowing in an LLC doesn't mean the people behind it disappear from the loan. Expect the owners to sign a personal guarantee, and expect their credit to be checked, with our 620 minimum applying to them. The guarantee is what lets a lender fund a company that has no credit history of its own.

If the LLC has several members, ask your loan officer which of them will need to sign. Lenders often tie that to each member's ownership share.

No. Individual investors borrow from us in their own names every day. An LLC is a choice about how you hold the property, not a requirement of the loan.

One thing to decide up front: if you want the property in an LLC, close in the LLC from the start. Moving a property into a company after a loan closes can conflict with the loan's terms, so talk to your loan officer and your attorney before transferring title on a financed property.

Alongside the usual DSCR documents, an LLC borrower brings: