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Thursday, December 8, 2011

Can I get a mortgage under a business name?

Can I get a mortgage under a business name?

The short answer is yes.
Buying real estate with a corporation can protect you from personal liability and it is a great way to separate business from personal holdings.
Often these are set up to protect a consumer's personal assets in case litigation is brought against his or her business. Setting up a mortgage through a corporation can be challenging, but is not difficult.

You will Need

  • Business Articles of Incorporation or Business registration
  • Business financial statements
  • Business account statements
  • Personal and corporate tax returns
  • Personal Guarantee…..meaning whoever owns the business must sign off on the mortgage.
  • You must be self  employed for at least 2 years or more
  • Your must put down at least 10% or more as a down payment
  • You and the company must have excellent credit
Also, if you are planning to buy a rental investment property it would make financial sense to put in under a corporate company to save on the capital gains when it is time to sell in the future.
Also be an informed client.