Frequently Asked Questions

Can I close my loan in the name of an LLC?

Loans may not close in the name of an LLC but may be deeded out of an LLC, to close a refinance transaction, for instance. Then, you would just deed back to the LLC post-closing through the services of legal counsel. In a purchase transaction, the loan would close in the individual’s name, then subsequently you could deed it to an LLC post-closing.

Real Estate loans in the USA are made to individuals, not entities such as corporations and LLCs, and are secured by the subject real estate. The real estate acts as the collateral for the loan, and therefore the lender has recourse to sell the property (through the foreclosure process) to force the repayment of the principal balance, plus costs, of the loan. This recourse ability by the lender significantly reduces the risk of making real estate loans and hence the reduced rate of interest that can be offered in the marketplace.