I believe most regional and local banks offers recourse debt while Agency Debt (Fannie Mae and Freddie Mac) offers non-recourse debt.

@Kit Williams - The property we got on Fannie Mae homepath was $256k (bargained down to 247k after inspections plus a 3% 7410 closing costs credit from homeready).

Hey BP family can anyone explain the meaning of a step down pre payment as well as yield maintenance and how an investor should look at and evaluate both when looking for a Fannie Mae loan or a recourse(bank) loan.

Your lender is not allowing placing the lone in an LLC's name is most likely because the loan is a conventional loan being underwritten using Fannie Mae guidelines.From an asset protection point of view you and your other assets could be exposed if you are sued. 

I've seen anywhere from 3% ownership to $50k cash to zero incentive since the KP gets to earn Fannie Mae/Freddie Mac loan experience. 

It shouldn't be an overlay that a bank would have over the Fannie Mae rule.

There liquidity concerns with many of them, but I can assure you Fannie Mae is still allowing for cash out refinances. 

Here are the types of loans available for these kinds of deals:- "Agency" Multifamily Loans - the two big government agencies that back small multifamily loans are Fannie Mae and Freddie Mac. 30 year amortization, typically 5-10 year term, non-recourse.

Without going too much into detail, I am contracted with Fannie Mae and I go to all of their vacant foreclosures when they first become vacant and begin the process of bringing it up to date and full market value.

@Joshua Boyce Here are your options.1) Finance the property in your own name with a Fannie Mae loan and then transfer the property to your LLC.