I want to purchase property under corporation but my corp has no credit history. Is this possible?

Question

I incorporated in 2002 but never did any thing with the corporation. My credit file sence my devorce is not in the best of shape so how hard would it be for me to obtain credit under my corporation?

Answer 1

The lending institution will use your property as collateral for the loan, so as long as the amt you borrow is below the valuation of the property, you should be able to get the loan. Be prepared to get at most 80% of the valuation.

Answer 2

You may still be able to do it. However, here are the potential consequences:
1. The bank will require a large down payment
2. The bank gives you a large interest rate
3. The bank makes you personally guarantee the debt. In this case, if your credit history is bad, you will be out of luck.

Most likely the bank will look past the corporation at the shareholders. If the shareholder can help back up the loan, then they will most likely let the corporation buy the property.