Seasoning requirements and LLC

[Ryan Johnston]

We are about to do a cash-out refi on a property that we purchased with cash in the name of a single-member LLC which I own. I purchased the property over 6 months ago, and it's been in the LLC the whole time. Now that the property is rehabbed and rented and we've met the 6-month seasoning requirement, we want to cash out using a conventional loan. I am getting conflicting information at this point:

1) I have one lender saying that, in order to use a conventional Fannie/Freddie loan and because the property is in an LLC, we would have to transfer it back to us personally before close AND restart the 6-month waiting period. I was planning to transfer, but the big surprise is that the 6-month seasoning period starts over. Yikes!

2) I have another lender saying that, because the property has seasoned within the LLC for 6 months, we can transfer to ourselves personally and refi without delay

Obviously, the 2nd is what I want to hear, but if the 1st is true, I need to know. Have you had experience to this end? Curious to get your thoughts!

[Charlie Fitzgerald]

Different lenders have different overlays on the Fannie/Freddie guidelines.  It's not a one size fits all world in conventional lending.