Fannie' Delayed Financing to refi w/ quitclaim to LLC

[Marina Startseva]

Have anyone done the following: Buy property with cash, refi through the delayed financing program (Fannie's) with followed quitclaim to LLC?

The reason I am asking is because the "Due on Sale Cl" is a notorious thing to discuss. BUT I was just offered exactly this scenario by an LO and was curious because he did that openly and upfront (I have an email from him saying this). That surprised me so I researched further and came across this =>> https://www.fanniemae.com/content/guide/servicing/d1/4.1/02.html  

So, does that (LO's suggestion + this allowable exemption) mean that some lenders see quitclaim to LLC a legit thing to do now?

P.S. I will be sure to ask the LO on Monday as well

[Kevin Romines]

@Tom Gimer Yeah, I know of many that do that as a way to protect their personal assets. But any LLC can be pierced by a good attorney that is hell bent on piercing the corporate veil. Just financing the property in your personal name and then moving it into your LLC, can be viewed as piercing the corporate veil.

The better protection is a max. sized liability policy followed by a properly sized umbrella policy. Plus the insurance company has to pay all defense costs. So the insurance would be willing to settle rather than paying out the max. of the policy limits, but that is also good for the landlord. 

There are portfolio loan for those that want the loan and title in the name of the LLC. Some require personal guarantees others don't.