Can my LLC buy the house I'm going to live in?
The full answer
Agency and government loan programs lend to natural persons (and, in limited cases, certain revocable living trusts) — an LLC is not an eligible borrower for an owner-occupied loan. That's why every 3–5% down primary-residence program you've seen requires your personal name on the note and title.
LLC-titled mortgages exist, but they're business-purpose loans: DSCR and other investor programs commonly close in an entity, at higher rates and larger down payments, precisely because the property is a rental. Signing an investment-purpose loan and then occupying the home yourself misstates the loan's purpose and your occupancy — a federal crime, not a loophole.
The liability-protection goal people are usually chasing has cleaner paths: umbrella insurance for a primary residence, or holding genuine rentals (financed as rentals) in the LLC. Some owners later transfer an investment property's title into an LLC after closing — that can trigger due-on-sale and insurance issues, so it's a conversation for a real-estate attorney, not a workaround for a primary home.
Can I move title into an LLC after closing?
Possible but risky. Most mortgages carry a due-on-sale clause that a transfer can trigger, and your homeowner's policy may not follow the property into an entity. This is a conversation for a real-estate attorney, not a workaround.
What about liability protection for my home?
Umbrella insurance is the conventional answer for a primary residence. LLC ownership is built for investment property, where the financing and the insurance are designed for entity ownership in the first place.
Related questions
If this came up, these usually do too — the short answer to each, with a link to the full breakdown:
- Can I live in a home I bought with a DSCR loan?No. DSCR loans are business-purpose loans made on the premise that the property is a rental generating the income that qualifies the loan.…
- Can I get a mortgage without tax returns?Yes, through non-QM loans. Bank statement loans qualify you on 12–24 months of deposits, P&L-only loans on a CPA-prepared profit-and-loss…
- How do mortgage lenders count rental income?Rentals already on your tax returns qualify from Schedule E cash flow, with paper expenses like depreciation added back. For a property…
- Do I need two years in business for a bank statement loan?Usually two years, but not always. Most bank statement lenders want a two-year self-employment history and 12–24 months of statements, yet…
- What is an expense factor on a bank statement loan?The expense factor is the percentage of your bank deposits a lender treats as business expenses when calculating qualifying income. If your…
Sources
- Fannie Mae Selling Guide
- CFPB — Consumer Financial Protection Bureau
- CFPB — Owning a Home: the mortgage process
Educational information only — not financial advice, and not a quote, pre-approval, or offer of credit. Program rules and ranges are illustrative and vary by lender. Mortgage Merlin is a publisher, not a lender or broker.