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Non-QM

Can a DSCR or conventional loan close in the name of an LLC?

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Fannie Mae does not allow a conventional loan to close in the name of an LLC, and Freddie Mac's refinance rules require LLC-held title to move into the borrower's name; the DSCR guides reviewed here allow LLC vesting on investment properties. Fannie Mae purchases mortgages made to natural persons, with listed exceptions that do not include LLCs, and title must be in the individual borrower's name. Freddie Mac's guide has no equivalent natural-person sentence in the text reviewed, but counts LLC ownership toward the six-month cash-out requirement only if title moves to the borrower by the Note Date, and requires a property moved into an LLC after closing to return to a natural person before any later refinance. AD Mortgage, Cake, The Loan Store and UWM each set their own ownership, guaranty and entity-document conditions.

Fannie Mae (conventional)

  • Fannie Mae purchases or securitizes mortgages made to borrowers who are natural persons. The listed exceptions are inter vivos revocable trusts, HomeStyle Renovation mortgages, and land trusts in states where the beneficiary is an individual; an LLC is not among them. Fannie Mae B2-2-01
  • A borrower establishes ownership interest by signing the security instrument and the note and by "taking title to the property in the name of the individual borrower(s)." Fannie Mae B2-2-01
  • Cash-out refinance: if an LLC majority-owned or controlled by the borrower held the property, that time may count toward the six-month ownership requirement, but ownership must be transferred out of the LLC into the individual borrower's name to close. Fannie Mae B2-1.3-03

Freddie Mac (conventional)

  • Cash-out refinance: LLC- or LP-titled time counts toward the six-month requirement only if a borrower has been the majority owner or in control since the entity acquired the property and title moves into the borrower's name on or before the Note Date. Freddie Mac 4301.5
  • After closing, once at least 12 months have passed since origination, the property may be transferred to an LLC or LP whose managing member or general partner is the original borrower; the servicer must tell the owner it must return to a natural person before any later refinance or modification application. Freddie Mac 8406.1

AD Mortgage (DSCR example)

  • AD Mortgage's Non-QM guide accepts vesting in an LLC under its Investment Property Program only, for business-purpose purchase or refinance loans; closing on a series LLC is not permitted. AD Mortgage Non-QM 10.3.2
  • Owners must be credit-qualified, act as guarantors and sign the note and security instruments; every individual with 25% or more ownership must be a qualifying borrower. AD Mortgage Non-QM 10.3.2

Cake (DSCR example)

  • Cake's DSCR guide accepts title vesting in a U.S. domestic LLC, partnership or corporation for business-purpose investment property transactions; when vesting in an entity while closing in an individual's name, at least 25% of entity ownership must be represented as borrowers. Cake DSCR 5.0, 4.7.2
  • Cake also permits lending to a U.S. domestic LLC as the borrowing entity, with a personal guaranty from members or managers representing at least 51% cumulative ownership. Cake DSCR 5.0, 4.7.3 Cake DSCR 5.0, 4.7.4

The Loan Store (DSCR example)

  • The Loan Store's Flex DSCR guide allows title in an LLC for investment property, but the loan application must be made in the individual borrower's name, and the borrower/guarantors must represent at least 50% ownership. The Loan Store Flex DSCR 1002
  • The same guide lists partnerships and corporations as ineligible vesting at closing. The Loan Store Flex DSCR 1002

UWM (DSCR example)

  • UWM's Investor Flex Blue guide treats closing with an LLC, partnership or corporation on title as eligible; all borrowers must be entity owners and the primary borrower must be a manager or majority owner (25% or greater). UWM Investor Flex Blue
  • The note must be signed by the applicants in their individual capacity and by at least one borrower as member or manager of the entity; entity-vested transactions cannot use a power of attorney. UWM Investor Flex Blue

Freddie Mac's Seller/Servicer Guide in Strata does not contain a general statement, like Fannie Mae's, that borrowers must be natural persons; its LLC rules in the text reviewed cover cash-out refinances and transfers after closing.

Sources

  • Fannie Mae Selling Guide, September 2, 2026 version: B2-2-01, General Borrower Eligibility Requirements (p. 223, 224, 225); B2-1.3-03, Cash-Out Refinance Transactions (p. 180)
  • Freddie Mac Single-Family Seller/Servicer Guide, September 16, 2026 version: 4301.5(b), Six-month ownership requirement for the Mortgaged Premises (p. 4301-7); 8406.1(d)(ii), Permitted Transfers of Ownership (p. 8406-5)
  • AD Mortgage Non-QM Loan Eligibility Guidelines, September 24, 2026 version: 10.3.2. Limited Liability Company (LLC) (p. 98)
  • Cake DSCR 5.0 Guidelines, September 30, 2026 version: 4.7.2 Business Entity Vesting (p. 15); 4.7.3 Borrowing Entities (Lending to the Entity) (p. 15); 4.7.4 Personal Guarantors (p. 16)
  • The Loan Store Flex NQM DSCR Guidelines, January 2, 2026 version: 1002. Title Vesting Requirements, Limited Liability Company (LLC) (p. 59); 1002. Title Vesting Requirements, Ineligible Vesting of Title (p. 60)
  • UWM Investor Flex Blue Guidelines, September 16, 2026 version: Vesting in an LLC, Partnership, or Corporation (PDF p. 30, 31)

Agency guides set the baseline; individual lenders can add stricter overlays. Sources are the guideline versions in Zeitro Strata as of October 29, 2026.

Resources

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