Fannie Mae 'Due on Sale' Exemption

[Scott Passman]

Here is a link ( https://www.fanniemae.com/content/guide/servicing/d1/4.1/02.html) to Fannie Mae exemptions to "Due on Sale" clause that includes the following: 

transfer to a limited liability company (LLC), provided that:

• -the mortgage loan was purchased or securitized by Fannie Mae on or after June 1, 2016, and

  -the LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence).

• Lots of discussion on here over the years about Due on Sale clauses and thought this might help.