Question: My client was a sole proprietor for the last 5 years. In January of 2020 he formed an LLC. How do I document his income? Answer: At a minimum, he would at least need one-year returns showing the transition. So, you would need at least the 2020 returns for the new ownership as an […]
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Answer: 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. The issue is that you would need to transfer title from the LLC to […]
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Answer: Fannie and Freddie only provide loans to individuals, not entities/corporations like an LLC. You would have to check with the loan servicer to see if they would allow the title (after loan is closed) to be changed to an LLC. When you are originating a loan to be sold to Fannie or Freddie, the title […]
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Answer: If you are dealing with a Fannie/Freddie loan, this shouldn’t be a problem. However, I do want to remind you that the loan cannot close in the name of an LLC. It must be in the name of an individual or a trust. Fannie and Freddie do not allow loans to businesses. The challenge with […]
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