Why Conventional Loans Prohibit LLC Closing
Conventional loans backed by Fannie Mae and Freddie Mac are underwritten to individuals: not entities. The borrower must be a natural person, and the property title must reflect personal ownership. Loans to LLCs, S-corps, or trusts do not conform to agency guidelines and therefore cannot be sold on the secondary market. This is why your bank or mortgage broker will tell you the property must be in your personal name.
Why Investors Want LLC Closing
There are three practical reasons investors prefer LLC ownership:
- Liability protection: A properly maintained LLC shields personal assets from property-related lawsuits. If a tenant sues, the claim is against the LLC: not you personally.
- Portfolio management: Separate LLCs for separate properties create clean accounting, easier partnership structures, and cleaner exit strategies.
- Personal credit isolation: DSCR loans in an LLC typically do not appear on your personal credit report, preserving personal credit capacity for other uses.
How DSCR LLC Closing Works in Practice
DSCR loans are private business-purpose loans not subject to Fannie Mae guidelines. The borrower of record is the LLC (or other entity), and the property is titled in the entity's name. The guarantor is typically a personal guarantee from the LLC member(s): meaning you still personally backstop the loan, but the titled borrower is the entity.
Entity Documents Required at Closing
- Articles of Organization (or equivalent)
- Operating Agreement with ownership percentages
- Certificate of Good Standing (from state of formation)
- EIN verification
- Personal guarantee from managing member(s)
Ready to Close in Your LLC?
All Get Brick Capital loans close in LLC. Submit your deal.
Submit Deal Summary →Tax and Liability Considerations
The tax and liability implications of LLC ownership are specific to your situation and state. This article is not tax or legal advice. We recommend consulting your CPA and real estate attorney before structuring new acquisitions or refinancing into an entity. What we can confirm: DSCR loans close in LLC on every transaction at Get Brick Capital: this is our standard, not an exception.
The Bottom Line
If you want to close your refinance in an LLC, DSCR is the right product. Conventional loans will not accommodate LLC closing. DSCR loans are designed for it, and every loan we originate closes in the borrowing entity, keeping the debt off your personal credit report and your personal assets protected.