No cash out refi on property held in LLC under new Fannie Mae?
Hi folks,
I was just shy of the finish line on a cash out refi on a rental I hold in an LLC...when today my Lender called and said a 'new Fannie Mae guideline' prohibits cash out refinances on properties owned through an LLC...so now according to him the ONLY way I can do the cash out refi is to quit claim to my personal name, let it season for 6 months, THEN do the cash out.
He has been in the industry for quite a while and works with a lot of investors so I want to believe him but REALLY?!?! How many of us take down properties all cash through our entities and then want to cash out? Can this really be the case?