Can an LLC get a mortgage in Florida?

Yes. LLCs can obtain mortgages in Florida, though not through conventional Fannie Mae/Freddie Mac programs (which require individual borrowers). LLC financing typically comes through DSCR (Debt Service Coverage Ratio) loans, portfolio lenders, or commercial mortgages. These products are specifically designed for entity-level borrowing and are widely used by Miami real estate investors.

What is a DSCR loan for an LLC in Miami?

A DSCR loan qualifies the LLC based on the rental income of the property rather than the personal income of the members. The Debt Service Coverage Ratio measures whether the property's rent covers the mortgage payment. A DSCR of 1.0 means rent equals the payment; most lenders want 1.1–1.25x. These loans close in the LLC's name and do not require personal income documentation.

Do I have to personally guarantee an LLC mortgage in Miami?

Most non-bank DSCR and portfolio lenders require a personal guarantee from the principal members of the LLC. This means you are personally liable if the LLC defaults, which partially reduces the asset protection benefit of the LLC structure. Some lenders offer non-recourse loans for commercial and large portfolio transactions, where the loan is backed only by the property.

Does buying property through an LLC protect my assets in Florida?

Florida LLCs offer strong charging order protection — creditors of an LLC member generally cannot seize LLC assets, only receive a charging order on distributions. Holding investment properties in separate LLCs limits liability exposure from one property affecting others. However, a personal guarantee on the mortgage pierces this protection for the lender. Consult a Florida real estate attorney to structure your holdings properly.

What are the down payment requirements for an LLC property loan in Miami?

DSCR and portfolio loans for LLCs in Miami typically require 20–30% down. Some lenders allow 15–20% down for properties with strong DSCR ratios. The higher down payment compared to owner-occupied loans reflects the investment nature of the transaction. Rates are also typically 0.5–1.5% higher than owner-occupied rates, subject to market conditions.

Can I transfer a property I already own into an LLC in Miami?

Yes, but if the property has a mortgage, the transfer could trigger the due-on-sale clause in your loan agreement, requiring the lender's consent or full payoff. Most investors handle this by refinancing into a DSCR loan in the LLC's name at the same time as the transfer. Some lenders grant permission for the transfer without triggering the clause; others do not. Always consult your lender and a real estate attorney before transferring title.

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Mortgage for LLC Miami: Buying Property Through a Florida LLC

Published: March 2026 | Last Updated: March 2026 · Category: Investment Property · NMLS #2583712

Miami's real estate investors frequently ask the same question: Can I buy property through my LLC and get a mortgage? The short answer is yes — but not through a conventional Fannie Mae or FHA loan. Entity-level financing in Miami works through specialized products like DSCR loans, portfolio mortgages, and commercial loans. Here is everything you need to know.

Why Conventional Mortgages Don't Work for LLCs

Conventional mortgages backed by Fannie Mae, Freddie Mac, FHA, or VA are designed exclusively for individual borrowers — natural persons, not legal entities. If you apply for a conventional loan in your LLC's name, it will be declined. This is not a problem with your LLC; it is a fundamental program guideline.

The good news: the non-QM and portfolio lending market has robust products specifically designed for LLC borrowers, and Miami's investment market is well-served by lenders who specialize in exactly this.

Key Insight: DSCR loans are the most popular LLC mortgage product in Miami. They qualify on rental income — not personal income — and close in the LLC's name. No W-2s, no personal tax returns, no DTI calculation on the members personally.

Financing Options for LLCs in Miami

🏠 DSCR Loans

Qualify on rental income. No personal income docs. Close in LLC name. 20–30% down. Most popular option for Miami investors.

🏢 Commercial Mortgages

For 5+ units or commercial property. Longer underwriting. Personal financials reviewed. Rates based on property income and LTV.

📊 Portfolio Loans

Lender holds the loan in-house. More flexible guidelines. Great for non-standard properties or complex LLC structures.

💰 Blanket Loans

Finance multiple properties under one loan. Cross-collateralized. Ideal for investors building a Miami rental portfolio.

DSCR Loans: The Go-To LLC Mortgage in Miami

DSCR stands for Debt Service Coverage Ratio — a measure of whether the rental income covers the mortgage payment. The formula is simple:

DSCR = Monthly Gross Rental Income ÷ Monthly PITIA (Principal + Interest + Taxes + Insurance + HOA)

DSCR of 1.25: Rental income covers the payment with 25% cushion — most lenders want this minimum
DSCR of 1.0: Break-even — some programs allow with higher down payment or credit score
DSCR below 1.0: Property does not cash flow — many lenders will not approve; some will with 30–35% down

Feature	DSCR Loan (LLC)	Conventional (Individual)
Borrower entity	LLC, Corp, Trust	Individual only
Income qualification	Property rental income	Personal income / W-2
Tax returns required?	No	Yes (2 years)
DTI calculation	No personal DTI	Personal DTI required
Down payment	20–30%	15–25% for investment
Personal guarantee	Usually required	N/A (individual loan)

Asset Protection: What the LLC Actually Protects

The primary reason investors use LLCs is liability isolation. If a tenant is injured at one property and sues, they can only reach the assets of that property's LLC — not your other properties or personal assets. Florida's charging order protection is particularly strong for multi-member LLCs.

However, there are important limits when a personal guarantee is involved:

If you personally guarantee the mortgage, the lender can pursue you personally on default — the LLC does not shield you from the lender
The LLC still protects you from other types of claims (tenant lawsuits, slip-and-falls, etc.)
Separate LLCs per property is the gold standard — one lawsuit cannot reach another property

Attorney Recommended: Structuring real estate investments through Florida LLCs involves both legal and tax considerations. Always work with a Florida real estate attorney and CPA before forming your LLC structure or transferring existing properties.

How to Structure the Deal

Form the Florida LLC first — articles of organization, operating agreement, and EIN in place before applying
Open a business bank account in the LLC's name — lenders will want to see entity banking
Identify the property and lease terms — lenders use market rent (via appraisal or lease agreement) for DSCR calculation
Apply for DSCR financing in the LLC's name — principal members sign as personal guarantors
Title vests in the LLC at closing — lender records a lien against the LLC-owned property

Finance Your Next Miami Investment Property Through an LLC

Lifetime Capital Funding specializes in DSCR and portfolio loans for Florida LLCs. All loans subject to approval. NMLS #2583712.

Start My LLC Loan Application

Or call us directly: 📞 (305) 669-2696
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Frequently Asked Questions

Lifetime Capital Funding LLC. NMLS #2583712. All loan programs are subject to credit approval, property qualification, and lender guidelines. Rates and terms vary and are not guaranteed. This article is for educational purposes only and does not constitute legal or tax advice. Consult a licensed Florida attorney and CPA for your specific situation. Not a commitment to lend.

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