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.
- What happens at the loan closing?
- How can you close my loan if you are not in my area?
- Can I select my own closing agent and title insurance company?
- Can I close my loan in the name of a Trust?
- How soon after I sign loan documents will my loan close?
- If I am receiving cash out at the end of the transaction, how will I receive my proceeds?
- If my loan is closing around the first of the month, should I still make my payment to my current lender?
- What happens to my loan after it closes?
- Can I make my monthly payments with an automated debit from my checking account?
- Can I make a bi-weekly payment?