If i get business equity line of credit, will it show my name in credit report or my business name?
Aug 21, 2009
in
Business Line Of Credit
I bought my second home cash using the equity line from my first house.Then I opened equity line on my second home and bought third home using that money. I bought my fourth home using the same formula. Now my fourth home is free and clear and I think the bank may be reluctant to open equity line of credit on my free and clear home, as my credit report will show too much loan. If I make LLC for the fourth home and get business line of credit, I know I will be the grantor, will my name show on the credit report. Will it be easier way to open line of credit?
Like this post? Subscribe to my RSS feed and get loads more!
2 comments
Mango on August 21, 2009 at 12:19 pm
It actually depends on your lender. Some lenders will require you to personally guarantee the loans and will report on your credit. If you have a legitimate business, an LLC and have some type of credit associated with it, some lenders will give you a line of credit on the business name only. The terms may not be as favorable as you want them to, but it is doable. The term used is non-recourse loan, and you can also open an account on your IRA’s name, using this type of loans.
As far as easier ways, try looking for all your local banks or credit unions. You’re going to have to do some legwork on those, but you will get better results than going with the national brands. Also, agricultural credit unions have good terms if you have in a rural area.
Worldly25 on August 21, 2009 at 12:19 pm
Yes your name will show as the responsible party for the debt.