Question about a home loan – property in name of trust?
March 11th, 2010 | by admin |I was wondering if you all could help. We have inherited a property from my mother. We want to borrow against it to get money to fix it up for sale. I don’t want the liability of the property falling back to me so I want to know if we can get a loan without deeding it to me or any of the other members in the trust. Let me know if you can help. Thanks.
To get the best interest rate, Fannie Mae, you would need to deed the property out of the trust and then back into the trust post closing as Fannie Mae loans to individuals not to entities.
I do have access however to a lender who will do loans on properites held in a trust, depending on credit and loan to value the rate would be somewhere between 12 -15%.
The one I did recently was a 2 year fixed at 13.99 with no pre-payment penalty and we financed the interest only payments so that the borrowers would have no payments and the loan could be paid in full when the property sold.
Feel free to email me with any further questions.
2 Responses to “Question about a home loan – property in name of trust?”
By swimmyfishy on Mar 11, 2010 | Reply
you will need to use your own money to fix it then. if you want a loan it would need to be in somones name. or sell it to one member.
References :
By mazziatplay on Mar 11, 2010 | Reply
To get the best interest rate, Fannie Mae, you would need to deed the property out of the trust and then back into the trust post closing as Fannie Mae loans to individuals not to entities.
I do have access however to a lender who will do loans on properites held in a trust, depending on credit and loan to value the rate would be somewhere between 12 -15%.
The one I did recently was a 2 year fixed at 13.99 with no pre-payment penalty and we financed the interest only payments so that the borrowers would have no payments and the loan could be paid in full when the property sold.
Feel free to email me with any further questions.
References :
20+ years as a direct mortgage lender