Personal Guarantee (PG)
A contractual obligation from an LLC's member(s) to be personally liable for repayment of the LLC's loan. Almost universal on DSCR loans to LLCs. Members owning 20%+ of the LLC typically must sign.
Why it matters on a DSCR loan
Investors sometimes assume that vesting in an LLC removes personal liability on the mortgage — it doesn't, because the PG puts the members back on the hook for repayment while the LLC still shields against tenant and premises claims. Expect every member at or above the ownership threshold to sign, which means partners' credit and background can affect your deal, so vet co-investors before applying. If avoiding a PG is essential, the non-recourse route exists but comes with meaningfully tighter terms.
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).