Mortgage in my own name, but title in LLC name. Is it possible?

Question

Is it possible to get a mortgage for a property in my own name, but hold the title of the property as an LLC?

I want to protect my other assets from any liabilities that may come up at this property, but I am having trouble getting reasonable financing in the LLC's name?

Is there some type of creative process that can be done at closing?

Eric Veronica · Answer

Account Closed it is possible and pretty common however title must be in your name when you close the loan.  Normal practice is to quit claim deed the property from the LLC to you name.  Then close the loan.  Then quit claim the property back into the LLC (Note that some lenders will not allow this)

See Link below to Fannie Mae guidelines.  Discussed about 2/3 of the way down the page

https://www.fanniemae.com/content/guide/servicing/d1/4.1/02.html

Mike S. · Answer

Search this forum for the following key words: due on sale clause, and land trust.

Basically, you obtain the mortgage under your name with the title under your name.

You then warranty deed the property into a land trust where you are the initial beneficiary. The Garn St Germain Act will protect you against the due on sale clause. Later you assign the beneficial interest of the land trust to the LLC. This being a private unregistered document should not create any red flag.

Also, recently some lenders will approve transfer to an LLC that you own. But it is still a sensitive subject with most of them.