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Can an LLC purchase a home in California?

Newhall, CA |

I live in Newhall CA I want to purchase a home I don't have great credit but I own an LLC with impeccable credit. can I purchase a home under the LLC?

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Attorney answers 3


Your personal credit will affect your ability to purchase a home. In nearly all cases the lender will require you to personally guarantee the loan to an LLC and your credit will therefore be a deciding factor. That being said -- credit is only one factor lenders consider and it is less important as the loan to value ratio decreases.

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An LLC is a legal entity which can acquire and own property. Therefore, the answer to your question is yes, an LLC can purchase a home. That being said, unless your LLC has sufficient assets and/or credit history, a personal guaranty from you will be necessary. The lender will seek to minimize the risk of their loan as much as possible.

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Michael Raymond Daymude

Michael Raymond Daymude


I agree with Mr. Lowenthal's answer and those of my other colleagues. I wish to point out, however, that homeowner borrowers generally receive more favorable terms than business entities. You may discover that the LLC's credit rating is not particularly valuable in the overall mix.

Justin C. Lowenthal

Justin C. Lowenthal


That is a very good point!

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