Mortgage Navigator • Conventional • Can This Be Done?

Refinancing Property Held in an LLC

Holding a property in an LLC does not always mean the ownership clock starts over when it is transferred to the borrower personally.

Build My Mortgage Game Plan Compare Fannie vs. Freddie

Cash-out ownership history

Fannie allows time the property was held by an LLC that is majority-owned or controlled by the borrower to count toward the six-month cash-out ownership requirement. Ownership must be transferred from the LLC into the individual borrower name for closing.

Limited cash-out

Fannie also recognizes certain limited cash-out situations where the borrower is financially obligated on the loan being paid off while title is held by an LLC majority-owned or controlled by the borrower, again requiring transfer into the individual borrower name.

Separate the clocks: counting LLC ownership toward the six-month title requirement does not erase Fannie's separate 12-month seasoning rule for an existing first mortgage being paid off in a standard cash-out refinance.

Official agency baseline

Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide

These are agency-level rules. AUS findings, mortgage insurance, product restrictions and lender/investor overlays can still affect a real loan.