Commercial Loan or Quit Claim Deed, which route to take?

[Joe Matthews]

I’m in the process of applying for a loan for my first investment property.

A lender just told me that Fannie Mae/ Freddie Mac require their loans to be under my name personally. They explained in order to purchase under an LLC I would have to do so under a commercial loan. Otherwise I could do a quit claim deed 6-8 weeks after closing and change the ownership to an LLC. I am new to this process and my question is what route do investors typically take when investing a property under a LLC.

The area is in Milwaukee if that matters in any way.

Thank you,

Joe Matthews

[Rolly Weaver]

Not legal advice....

For the properties I've put in LLC, its always been done some time after closing, as the bank wants a person to be liable if the payments stop.

In short, commercial, can get loan in LLC, but you may have to sign a personal guarantee and residential normally in your own name. But it may depend on your bank.