Loans, delayed financing, cash-out-refi in an LLC??

[Lee Carter]

Do most investors buy property in their name to qualify for financing then transfer the title after the fact to their LLC ignoring the due on sale? Or do most investors use commercial loans? I’m being told from a broker that most investors purchase in their name and transfer the title later and that banks never call those loans due because they are more interested in the interest they’ll get. Thanks Lee

[Stephanie Medellin]

@Lee Carter If your loan is made through a Fannie Mae program, they issued a new rule last year that you could transfer property to an LLC without triggering the due on sale clause.

https://www.fanniemae.com/content/guide/servicing/...

You can also finance property through an LLC and find 20-30 year fixed rates, but it won't be "conventional" financing at the most competitive rates. By conventional I mean fannie mae/freddie mac loans. You won't necessarily need a commercial loan to finance in an LLC.