I'm 2 days from closing on my first rental property and the bank said today that the deed & mortgage could not be issued under the LLC, had to be in my name, because of new Freddy Mac rules. Anyone know if that is true??
@Tyler Dieringer No, you can not get Fannie or Freddie financing through an entity.....this is not new, it has been that way Forever. Your loan officer seems clueless.
Yes, I believe that is true. People typically purchase in their own name and then use a quit claim deed to transfer the property to the LLC.
In theory, the lender could call the loan due in full because you have "sold" the property, but as long as you pay the loan that seems HIGHLY unlikely to happen. People have done this for a long time and I have only ever heard of one person having an issue.
So, when you are done, the deed will be with your LLC and the debt will be in your name personally.
@Tyler Dieringer No, you can not get Fannie or Freddie financing through an entity.....this is not new, it has been that way Forever. Your loan officer seems clueless.
Have a sidebar conversation with your closing attorney. Sometimes you can let them know you want to Quit Claim it to the LLC and do that paperwork at the same time. If "your" team knows what you are trying to accomplish it simplifies everything. Your attorney can figure out the timing on when they can get the quit claim done easy.