Purchasing with an LLC Changes & What You Need to Know.

[Jerry Padilla]

Conventional financing requires the property to be in your personal name. 

Fannie Mae and Freddie Mac both have removed the continuity of obligation 

Now you must own the property for 6 months to transfer ownership from LLC to your personal name, to obtain conventional financing.

This eliminates delayed financing if you purchased with an LLC, and rate and term refinancing prior to 6 months.

If purchased and the period of time from closing is greater than 6 months with an LLC, you can change to your personal name at closing of the subject loan to obtain conventional refinance, cash out financing.

If you have no interest in getting conventional financing this won't affect you. 

[Jerry Padilla]

@Garrett M. Those costs vary state to state, and is more of a title company question. I can definately look into it for you if you want to give me a call. I don't think this scenerio will alleviate any additional fees for the refinance. It really just makes it more difficult for investors purchasing with an LLC to get conventional financing for the first 6 months after purchasing the property, even if they are willing to transfer into their personal name. Although an LLC has its benefits, many investors don't realize how tough or more expensive financing is when going this route.