Can you purchase a home with a conventional loan as a primary residence and then transfer that loan to an LLC? I've heard from some lenders that if they find out, they can call the entire balance due which means you'd have to either pay it off or refinance. Can anyone speak to how this normally works and the likely consequences? Thanks!
If other than a Fannie Mae loan, yes, it technically violates the "Due on Sale" clause of the lenders note on the loan. If they find out, they can ask you to revert title back to you personally, or be potentially subject to them calling the whole loan due, A foreclosure.
I say other than Fannie Mae, because on 6/1/2016 Fannie Mae changed that rule to accommodate those who want to take the loan out in their personal name and then transfer the title to an LLC that they are the majority members of. At that point, Fannie Mae says that is acceptable and no longer violates the "Due on Sale" clause. See below: