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Updated about 3 years ago on .
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Due on sale - no longer an issue after new Fannie Mae guidance?
I saw recently that Fannie Mae released new guidance on the due-on-sale clause where they are no longer enforcing when someone transfers ownership to an LLC owned by themselves.
The quote and link below:
"A limited liability company (LLC), provided that
- the mortgage loan was purchased or securitized by Fannie Mae on or after June 1, 2016, and the LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence)."
https://servicing-guide.fannie...
Does this mean if I got my mortgage 2 years ago and it's owned by Fannie Mae, that I don't have to worry about due on sale?