LLC Vested in Title
Did you know that the time a property is held by an LLC may be counted towards meeting the borrower's six-month ownership requirement for a Fannie Mae Cash-Out Refinance?
If the property was owned prior to closing by a limited liability corporation (LLC) that is majority-owned or controlled by the borrower(s), the time it was held by the LLC may be counted towards meeting the borrower’s six month ownership requirement.
Note: In order to close the refinance transaction, ownership must be transferred out of the LLC and into the name of the individual borrower(s).
See Fairway Guides for more information. Once logged in on the FWL website, click on “Guides” at the top. It will redirect you to the Knowledge Owl website where you will click on “Wholesale Underwriting Guidelines” then “Loan Purpose” then “Conventional Refinance – Cash Out/Cash-inHand”.