Can you put primary residence in LLC?

Question

I have a FHA mortgage on my primary property. Is it possible to put my primary mortgage in my LLC name and then buy a HUD home as a 1st time home buyer (taking advantage of the $100 down)? Rent out my primary property for a year and live in the HUD home?

Stephanie P. · Answer

The short answer is no.

The longer answer is you could do it if you sell the property you own and wait the requisite time between having a mortgage and not. If you own another home (even in a single member LLC where you 're the guarantor), it would not be allowed. 1st time homebuyer programs and products are designed to introduce and lower the barrier to entry to underserved populations so they can build generational wealth through homeownership, not to be taken advantage of by real estate investors.

Wayne Brooks · Answer

Aside from what had already been mentioned, an incredibly small number of HUD homes are offered with $100 down and they of course get a lot of bids.

Nathan Gesner · Answer

In order to qualify as a "first time home buyer" you usually have to show that you haven't had a mortgage in at least three years. So I suppose you could possibly transfer the home out of your name, but then you would have to wait a long time or it to clear off your credit report.

Doesn't seem worth the effort and people rarely build wealth via shortcuts. Live within your means, save money, sacrifice, and invest from a position of strength.

Mike S. · Answer

@Alfonzo Roberts

Some lender will let you change the title of the property to a single member LLC but the mortgage will still be under your name. They will not let you assume the mortgage by an LLC.

If you want to get a new mortgage under an LLC name, you will probably need a commercial mortgage with a higher rate.

Can you put primary residence in LLC?

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