Lending to the entity
Because DSCR loans are business-purpose by design, many wholesale programs are comfortable with an LLC as the borrower. The loan is made to the entity, the property stays titled to the entity, and the cash-out proceeds go to the entity. That keeps your structure intact and your books clean.
What lenders review
Expect the wholesale lender to underwrite both the entity and the people behind it:
- Articles of organization and operating agreement
- Certificate of good standing from the state
- EIN documentation
- A list of members and ownership percentages
- Credit and background review of the principal members
- Authority documents showing who can sign for the LLC
Personal guarantees
Even when the LLC is the borrower, most DSCR programs require the majority owners to personally guarantee the loan. The entity structure still has value, but it does not usually make the loan non-recourse. Read the guarantee carefully and ask your attorney about how it interacts with your broader asset-protection plan.
Moving a property into an LLC
If a rental is currently in your personal name and you want the new loan in an LLC, the transfer has consequences: it can affect seasoning, title insurance and the existing mortgage. Talk to us before you record a deed, so the transfer and the refinance are sequenced in a way the wholesale lender will accept.
Broker, not lender. We arrange and shop business-purpose financing from wholesale lenders. Program guidelines, leverage limits and terms vary by lender and change over time; nothing on this page is a commitment to lend.
Common questions
Can an LLC get a DSCR cash-out refinance?
Yes. Many wholesale DSCR programs lend directly to LLCs for non-owner-occupied investment property, typically with personal guarantees from the majority members.
Can a newly formed LLC qualify?
Often yes. Because underwriting focuses on the property and the guarantors, many programs accept newly formed entities as long as the documents are in order.