No cash out refi on property held in LLC under new Fannie Mae?

[Dave Hurt]

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?

[Upen Patel]

@Dave Hurt In the past Fannie allowed cash-out refi on properties even if they were held in LLC (as long it was 100% and more then 6 months). Guidelines have changed (which they do all the time) and now the 6 months seasoning requirement has to be meet by the title being the individuals name.

Your options are:

* Transfer title and wait for 6 months

* Get a residential portfolio loan (30 yr fixed, but higher rate)

* Get a commercial portfolio loan (5-7 yr balloon, 20-25 yr amortization)