Fannie Mae (Conventional) Loan and Wanting to Close with Land Trust

[Ryan Fahey]

Hi all, I have a Wyoming Holding company and Arizona LLC created. I am open in escrow on an investment property that I'm doing with a Fannie Mae loan. I'd love to close with my name not on the title. I know land trusts can assist but my lender is saying there may be concerns since its a conventional loan. My question: What do you suggest for the best way for me to handle? Can I get the land trust done with myself as trustee, beneficiary and grantor for closing OR do I need to close in my name and then do a deed transfer afterwards to somewhat remove the paper trail of myself attached? Once in the land trust a future step will be for me to move into Arizona LLC with assignment of trust out of my name and into the LLC. Thanks in advance - I'm stuck on how to proceed with loan in motion and how to close with the most privacy, if possible.

[David M.]

@Ryan Fahey

bottom line: legal entities are NOT eligible for conforming residential loans. You want the limited liability protection of a LLC, you have to use commercial, i.e. non-residential, financing.

Your corporate veil is a legal issue, not an accounting or financing issue. Transferring the deed around only serves to provide basis for using the LLC as an alter-ego.

And, assumedly you want the anonymity from the WY LLC. As soon as you sign "just about" anything, your name is associated with the LLC. Game over...

Of course, consult a qualified professional or two.