New Change to Fannie LLC seasoning.

[Marques J.]

Wonderful news for those looking to cashout refinance a property seasoned in majority owned LLC.

I have owned a property in a single member LLC for over 1.5 years. When I went to refinance I was told the seasoning while in the LLC name didn't count towards 6 month cashout minimum seasoning. That WAS the case until yesterday.

Cash-Out Refinance Waiting Periods for Properties Owned by Limited Liability Corporations On November 8, 2017, the Servicing Guide was updated to allow a post-origination transfer into a limited liability company (LLC) under certain conditions. In acknowledgment of this change, the waiting period prior to a cash-out refinance transaction has been clarified in the Selling Guide. We will now allow time held in an LLC that is controlled or majority owned by the borrower(s) to count towards the borrower's six-month ownership requirement. Effective Date This clarification is effective immediately.

https://www.fanniemae.com/content/announcement/sel...