Finance
An Oklahoma real estate investor who purchases rental properties in an LLC or corporation should understand that for Fannie Mae/Freddie Mac conventional financing:
ALLC ownership makes it easier to get conventional financing
BProperties owned by LLCs typically do not qualify for conventional residential financing; investors often need commercial or portfolio loans, or must take title personally✓ Correct
CThe LLC must be at least 5 years old for financing
DLLC ownership converts the loan to a government-backed loan automatically
Explanation
Fannie Mae and Freddie Mac generally require the borrower to hold title individually for residential investment property financing. Properties owned by LLCs, corporations, or partnerships do not qualify for conventional conforming loans and require commercial or portfolio financing.
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