Which Mortgage Lender for Us?

[maurskyj]

Since our business was started, we've been taking out personal loans for the business, as we have high FICO scores and had no business credit.  Since trying to get a mortgage, however, I've been buildilng up our DnB business credit score to try and refinance our debt into the business name.  It will take a very long time, as I've discovered.   Are there companies who will take into account the fact that 3 of my loans are business loans paid for by company (before salaries are paid) out of company account and written off as expense by company?  So far, two have rejected our applications, stating our personal debt "appear" way too high, even though I told them we can produce evidence that it is all business debt.  Thank you for all advice.

[frugalQ]

Look at it from the lender's perspective. You are personally liable for the loans, not your business. If something was to happen and the business couldn't pay the loans, the creditor would come after you personally, not your business. Your personal assets would be at stake....and ultimately the lender's liability.

This is why these loans are included in your DTI calculation.

[ezdriver]

As noted by the previous poster, these are really personal loans that you use to invest in your business. The way you are operating your business makes it impossible to seperate it from you. Bottom line is that your liability for repayment of those loans will always be yours unless you can acquire a true business loan without any personal guarantee.