How to title real estate- single and small multi-family

[Steve Uhlig]

What is the best practice for titling ownership of single family homes, condos, town homes, and small multi-family properties to limit my liability to the value of the asset? I looked into titling my first property in the name of an LLC to limit my personal liability on advice from my attorney. However, in speaking to lenders I discovered that LLCs do not qualify for a traditional Fannie or Freddie backed 30-year mortgage. Apparently, LLCs only qualify for commercial loans which come with shorter terms and higher interest rates. Obtaining a commercial loan for a single family home, condo, or town home, in my analyses, seems to defeat the purpose as the debt payments are so high that the properties at best break even each month and many times cash flow negatively. I am brand new and would be interested in hearing what the voices of experience can say about this subject. Many thanks