Refinancing a Property Held in an LLC

Can you refinance a property held in an LLC? Possibly. The answer depends on who owns the LLC, who owes the current loan, the purpose of the refinance, the property, and the lender’s program. An LLC-held property does not automatically qualify for an individual mortgage, and there is no universal “no seasoning” rule.

How title and loan purpose affect the options

For a Fannie Mae limited cash-out refinance, at least one borrower generally must be on title when applying. A documented exception may apply when a borrower is personally obligated on the loan being paid off and the property is held by an LLC the borrower majority-owns or controls; title must transfer to the individual borrower(s). For cash-out, separate six-month ownership and existing-first-mortgage timing rules apply. Time held by a borrower-controlled LLC may count toward the ownership period, but it does not waive every timing rule. Ask the lender to verify the exact loan purpose and exceptions before moving title. A new loan with the LLC as borrower or titleholder is a different, lender-specific question; do not assume an agency loan can close that way.

Review the current Fannie Mae limited cash-out guidance, cash-out guidance, and borrower eligibility rules with your loan professional. The applicable rules and any portfolio-lender alternatives must be checked against your actual file.

What to prepare before asking for a refinance review

• The current deed or title record and the LLC’s ownership documents.
• The current mortgage statement, note, payoff information, and the date the loan began.
• Your refinance goal: changing terms, accessing equity, or financing an investment property.
• Property-use, insurance, tax, income, and asset records the lender requests.
• Any trust or partnership documents, if those structures also affect ownership.

Before transferring title or changing an entity, ask the prospective lender and a qualified legal or tax adviser about the effects on the loan, insurance, taxes, and ownership. Do not send sensitive documents through a general contact message.

Compare the complete offer

If the proposed loan uses a consumer-mortgage Loan Estimate, compare the payment, closing costs, cash to close, and longer-term borrowing cost. The Consumer Financial Protection Bureau explains how to compare Loan Estimates. Business-purpose financing may use different disclosures; ask for written terms that let you compare the full cost and obligations.

Explore refinancing or contact NorthStar Funding with the property and ownership questions you want reviewed. You can also call 800-917-1595. This is general planning information, not a loan offer, legal or tax advice, or a promise of eligibility. Program terms and approval depend on the lender’s review.