Posted on: 01st Aug, 2010 04:59 am
[color=DarkBlue:60b8f77c2f][size=12:60b8f77c2f]My wife and I are forming a LLC to hold our rental properties which we will purchase in a near future. How many mortgage a LLC can get? Is the no more than 4 mortgages (or no more than 10 mortgages if not sell to Fannie or Freddie) rule applied to LLC? How the credit and debt ratio of the new formed LLC calculated? [/size:60b8f77c2f][/color:60b8f77c2f]
Hi feilullc,
As far as I know, there is no particular number regarding mortgages which an LLC can hold. At least I haven't heard of any such specified number. If there is mortgage on the property, then you should let the lender know as to whether or not he would let you transfer the property to the LLC. In my opinion, though you transfer the property to the LLC, you may be liable for the mortgage. In that case, the loans will be a part of your credit and debt ratio.
Thanks
As far as I know, there is no particular number regarding mortgages which an LLC can hold. At least I haven't heard of any such specified number. If there is mortgage on the property, then you should let the lender know as to whether or not he would let you transfer the property to the LLC. In my opinion, though you transfer the property to the LLC, you may be liable for the mortgage. In that case, the loans will be a part of your credit and debt ratio.
Thanks