Can a mortgaged property by an individual be titled as an LLC?

[Megan Cauble]

Is it possible to have the title of an investment property named as an LLC with 3 individuals as members with one of the members the sole mortgagor on the property?

[Bob Okenwa]

You can make this transfer to 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).

Note: The servicer must notify the borrower that a property transferred to an LLC must be transferred back to a natural person prior to any subsequent refinance application in order to meet Fannie Mae's Selling Guide underwriting requirements."

This is directly from the Fannie Mae selling guide and is only applicable to Fannie Mae loans.