LLC (Limited Liability Company)
A legal entity that holds title to investment property, providing liability separation between the property and the owner's personal assets. DSCR loans are routinely made to LLCs at the same rate as personal-name loans, with members providing personal guarantees. See LLC DSCR Guide →
Why it matters on a DSCR loan
Closing a DSCR loan in an LLC is standard practice and one of the product's biggest advantages over conventional financing, which generally requires personal-name title. Set the entity up correctly before going under contract — lenders will want the operating agreement, articles, and good standing certificate, and last-minute entity formation is a frequent closing-delay culprit. Remember the LLC does not remove personal responsibility for the debt, since members typically sign a personal guarantee.
Related terms
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DSCR Calculator Get a QuoteReviewed by Arin Baghermian, Broker Owner — NMLS #1220456 · Last reviewed July 2, 2026 · DSCR Capital Partners is a brand of UTM Financial, LLC (NMLS #2591548).