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...

[Marques J.]

@Donald S.

Say you buy a property with private money and take title in your LLC (which helps prevent dod frank requirements as its a commercial loan). As of yesterday the time the property spends titled in the LLC name counts toward the 6 month seasoning requirement for cash out refinances if you are the majority member of the LLC.

Before yesterday you had to change title to your personal name and wait 6 months longer to get conventional cashout refinance.

This doesn't really change the fact that you cant close conventional loan with title in an LLC. (Although I did see some changes on that also but as a rule its not allowed).

Make more sense?