LLC's and Fannie/Freddie cash out refi's

[Greg Jeanfreau]

Hey BPland,

I just heard on a podcast from a couple of months ago that Fannie has a new rule that individual properties held in an LLC must not only be put in the name(s) of the borrower(s) to close on the loan, but that for cash out refi's, there is now also a 6 month seasoning period that starts from when the property was transferred out of the LLC into the name of the borrower. Is this true and does it mean that we need to transfer into our personal names and THEN wait 6 months to close on a conventional loan?

Thanks!

[Melvin List]

You don't need to wait!  You can cash out and at closing you can put the mortgage in your personal name!

[Andrew Postell]

@Greg Jeanfreau 5 months? Ok, I'll join in. Just to reiterate: If you or your LLC have owned the property for 6 months then you can do a cash out refinance. If you purchased with cash you can do it quicker but essentially if you or your LLC have had it for 6 months you are good. Feel free to ask anything additional if you need. Thanks!