Does anyone know if it is possible to carry title of a FHA purchased Multifamily property in the name of an LLC. The bank and FHA are both telling me no, but I am sure there is a way that you can do this, because an LLC helps protect you against liabilities, as well as giving you tax advantages.
Uh…if the bank and FHA are both telling you no, then I believe that it’s pretty obvious that the answer is no.
Even if it was allowed (that is the LLC name to go the loan), you would still have to personally quarantee the loan.
You CAN hold title to the property in an LLC. If the lender doesn’t allow it to be titled for the loan, you could simply quit claim it to the LLC after the loan closes. However, there is a risk of the note being called due.
FHA loans are for owner occupants and owner occupants only. Owner occupants are individuals who qualify for a consumer mortgage loan.
An LLC is a business entity separate from an individual. LLCs get commercial loans. FHA does not do commerical loans.
If the multifamily is four units or less, and if you intend to occupy one of the units as your primary residence, and if you will take title in your own name, then you can get an FHA loan. If you fail any of these conditions (even one), then your funding has to come from a non-FHA loan program.