Setting up an LLC to own your home costs a few hundred bucks. You don't need any cash beyond filing fees and legal fees (if you use a lawyer). The bank will n

Setting up an LLC to own your home costs a few hundred bucks. You don't need any cash beyond filing fees and legal fees (if you use a lawyer). The bank will not care. Their loan agreement gives them the right to foreclose if the loan is not being repaid. The exact legal owner of the house isn't relevant. There is one issue to be aware of. If you own your home as an individual, you get a federal capital gains tax break when you sell (the first $250,000 of gains is exempted from tax). If an LLC owns the home, there is no tax break and all of your gains are taxable. This is the real reason why only wealthy people put their homes into LLCs. If you have a $40 million house, this tax break is not particularly meaningful. If you have a $400,000 house, it is very meaningful. (Consult with your accountant; this is not tax advice.)