How to Finance an Investment Property in an LLC

If you want the property titled in an LLC for liability separation, your loan options narrow — conventional generally will not, but several investor products will. Here is how to finance in an entity.

Your financing options

Best fit

DSCR Loans

DSCR (Debt Service Coverage Ratio) loans qualify based on the property's rental income, not your personal income or W-2s. The most popular loan product for buy-and-hold real estate investors scaling a rental portfolio.

92%
fit
Rate
6.5%–8.5%
LTV
75%–80%
Term
30-year fixed or 5/6 ARM
Min credit
620–680
  • Built for long-term holds
  • Close directly in your LLC

Conventional Investment Property Loans

Traditional Fannie Mae/Freddie Mac-backed mortgages for investment properties. The lowest rates available for investors, but require personal income qualification and are limited to 10 financed properties.

74%
fit
Rate
6.0%–7.5%
LTV
75%–80%
Term
15 or 30-year fixed
Min credit
680–720
  • Built for long-term holds
  • !Conventional usually requires title in your personal name, not an LLC

Portfolio Loans

Portfolio loans are held by the originating bank (not sold to Fannie/Freddie), giving lenders flexibility on guidelines. Ideal for investors with 5+ properties who need blanket financing or flexible underwriting.

64%
fit
Rate
7.0%–9.0%
LTV
70%–80%
Term
5–30 years (balloon or fully amortizing)
Min credit
650–700
  • Built for long-term holds

Lenders to start with

Bank Statement Loans

Non-QM loans that use 12–24 months of bank statements instead of tax returns to verify income. Designed for self-employed investors and business owners whose tax returns understate their actual income.

60%
fit
Rate
7.0%–9.5%
LTV
75%–80%
Term
30-year fixed or ARM
Min credit
660–700
  • Built for long-term holds

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Loans built to close in an entity

DSCR loans are the most common way to close in an LLC: they qualify on the property’s income, vest title in your entity, and have no property-count cap. Portfolio loans and commercial loans likewise lend to entities, and short-term hard and private money almost always allow it.

Conventional financing is the outlier. Fannie and Freddie loans generally require title in your personal name, and moving a conventionally financed property into an LLC afterward can trip the due-on-sale clause. If the LLC matters to you up front, plan around DSCR or portfolio financing.

Frequently asked questions

Can I get a conventional loan in an LLC?

Generally no — conventional Fannie/Freddie loans require title in your personal name. To close in an LLC, investors typically use DSCR, portfolio, or commercial loans.

Should I transfer a financed property into an LLC after closing?

It can trigger the mortgage’s due-on-sale clause, giving the lender the right to call the loan. Many investors finance in the LLC from the start with a DSCR loan instead. Talk to an attorney before transferring title on a financed property.

More financing scenarios