why do Fannie & Freddie prohibit lending to an llc?

Private Lending & Conventional Mortgage Advice
9yFollow

why do Fannie & Freddie prohibit lending to an llc?

Dave Bond
Las Cruces, NM · Member since 2016 · 27 posts · 7 votes

I'm just trying to understand the specific stated reasoning for these institutions prohibition of lending to a corporation.  Logically, I can deduce my own conclusions, just can't find any definitive answers.  Just that they don't.......

0Reply
16 views

Most Popular Reply

Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
9y

Mortgages in an individuals name have lower default rates than those in a business entity

[email protected]301-893-4635Podcast Guest on Show #192
District Invest Group546 Reviews
WebsiteView Page
3Reply
See this reply in the discussion

4 Replies

Jump to latestLatest
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    9y

    Mortgages in an individuals name have lower default rates than those in a business entity

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group546 Reviews
    WebsiteView Page
    3Reply
  • Chris MasonPro Member
    Moderator
    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    9y

    How many times has an LLC owned by Trump declared bankruptcy?

    How many times has Trump himself as a natural human person declared bankruptcy? 

    LLCs are not creditworthy.

    2Reply
  • Account Closed
    Lender · Los Angeles, CA · Member since 2015 · 399 posts · 174 votes
    9y

    They were founded by the government with the specific purpose of stimulating the housing market by making mortgages available to low to moderate income consumers.  Their purpose is not to stimulate business necessarily.

    3Reply
  • Ronald Starusnak
    Property Manager · Syracuse, NY · Member since 2016 · 601 posts · 384 votes
    9y

    These loan types were put in place to help individuals, not companies. 

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free