Can an LLC get a mortgage loan in Virginia?

If you’re wondering if an LLC can get a mortgage loan in Virginia, the answer is yes.

You might be considering purchasing a home in Virginia with an LLC to enable your business to own the property or to help limit your liability for your business.

Here’s what you need to know about buying a home with an LLC and the benefits of having a property under your LLC. 

Contact a commercial mortgage broker in VA if you’re interested in applying for a commercial loan.

What is an LLC?

An LLC (limited liability company) is a business structure in the U.S. owned by one or more individuals or entities. Business owners mainly organize their businesses as LLCs because they protect owners from personal responsibility for their debts or liability. Limited liability companies are hybrid entities that combine the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Members, which can include corporations, other LLCs, etc., can own an LLC. Most states also allow single owners to own an LLC.

Call our loan officers if you need help applying for a commercial loan in Arlington, VA.

What are the Benefits of Purchasing a House with an LLC?

You can reap a couple of fantastic benefits when you purchase a property with an LLC. These benefits include tax benefits, limited liability, and more! Buying a house with an LLC also permits you to keep your business separate from your personal life. Let’s take a closer look at the advantages of buying with an LLC.

Limited Liability

Limited liability means that the business owner (you) will not become personally responsible for the company’s debts or liabilities. So, the LLC business structure might be the perfect match for you if you’re scared of getting involved in a lawsuit as a business owner or real estate investor, the LLC business structure might be the perfect match for you. 

Pass-through Taxation

Using an LLC to buy a home in Virginia has significant benefits. One of those benefits is that it eliminates double taxation. Double taxation is when the same income, assets, or financial transaction is subject to taxation at two different levels or in two other countries. Instead, LLCs go through a pass-through tax structure, which basically means the LLC pays taxes on profits, but the owner of the LLC doesn’t. 

Increased Privacy

Another benefit of LLCs is that they help make a property more anonymous.

When a property is purchased under an LLC, the LLC’s name appears on public documents and disclosures, not the owner’s. This means LLCs allow you to conceal your identity and other information.

If you want to compare commercial rates vs. residential rates, ask our loan officers at The Mortgage Option.

Wrapping Up

Getting a mortgage loan in Virginia as an LLC is possible, and it’s not as complicated as people think. After forming your LLC and identifying a property, you’d like to purchase, work with mortgage experts from The Mortgage Option of Virginia to start the application process.

* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.

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