How to Get My Mortgage in My LLC

Several types of corporate structures exist within the U.S. tax code. Among these are sole proprietorships, corporations, S-Corporations, and limited liability corporations. The purpose of each structure is to provide tax advantages for your particular situation. If you own a mortgage, one popular transaction is to move it into a limited liability corporation (LLC) for tax considerations. LLCs also insulate property owners from personal liability, which is good for homeowners who rent their properties.

Instructions

1. Complete a warranty deed with the county courthouse where the house is located. This will make sure the transfer is free and clear.

2. Contact your attorney. She will provide you with assistance in filling out the warranty deed. There may also be additional paperwork to fill out depending on your county. You can also contact the county clerk to see if they can tell you what paperwork you need complete in addition to the warranty deed.

3. Obtain the consent of the current lender. Most property loans require you to obtain the consent of the current lender before you transfer ownership to another person or entity (LLC). Some will not agree because they want to re-qualify the entity as a borrower. The worst-case scenario is that you will have to pay additional origination points and a higher interest rate for the transfer.

Tips & Warnings

• This is not to be construed as legal advice.

References

• LLCCorporation: ct 02, 2007 LLCs and Real Property - Benefits and Pitfalls
• ThinkGlink: Transferring Property To An LLC