Does Fannie Mae allow revocable trust?
Fannie Mae will accept an inter vivos revocable trust that has an ownership interest in the security property as an eligible mortgagor (a party to the security instrument) for all transaction types, provided it complies with the requirements in B2-2-05, Inter Vivos Revocable Trusts.
How long are assets good for Fannie Mae?
Depository Assets Quarterly bank statements must be dated within 90 days of the initial loan application date, and the lender must confirm that the funds in the account have not been transferred to another asset account that is verified with more current documentation.
What is considered a large deposit Fannie Mae?
When bank statements (typically covering the most recent two months) are used, the lender must evaluate large deposits, which are defined as a single deposit that exceeds 50% of the total monthly qualifying income for the loan.
How many months bank statements does Fannie Mae require?
The statements must cover the most recent full two-month period of account activity (60 days, or, if account information is reported on a quarterly basis, the most recent quarter).
Who are the beneficiaries of a revocable living trust?
Additionally, you will name your beneficiaries in your revocable living trust. Your beneficiaries are your loved ones that you want to inherit your money and property after you die. Usually this is a spouse, children, grandchildren etc. Lastly, you will designate your successor trustee.
What happens if I transfer my home to a revocable trust?
This includes those assets you over which you retain control as the trustee of a revocable trust, as well as those you own individually. If you execute a deed transferring your home into the trust, it’s just as vulnerable as if you had continued to own it outright.
Can a house be put into a trust?
Yes, you can put a house with a mortgage into a trust — in fact, it’s common to do so, especially with a revocable trust. But, this doesn’t mean you can stop paying your monthly mortgage payment. Some transfers of property can trigger a “due on sale” clause that allows your lender to demand that you pay the loan in full immediately.
What happens to a house if a trust dissolves?
This means that although the home technically belongs to the trust, you have the ability to take back the property at any time. If you dissolve the trust, then you must file a new deed at the county courthouse that lists you, rather than the trust, as the property owner.
Is it safe to put my house in a revocable trust?
If your house is not included in your probate estate, it may be safe. Because you retain control over assets placed in your revocable trust, any equity in your house will count toward your estate’s total value when determining whether it’s large enough to be liable for estate taxes. Placing it in a trust will not save it from estate taxation.
Can a child be a co trustee in a revocable living trust?
Revocable Living Trust, More Options! Revocable Living Trusts are trusts created during your life into which you place your property. Generally, they are designed to avoid probate, but can also help a parent in need of a child’s assistance. The child can be made a co-trustee along with the parent.
How does a revocable trust work for Medicaid?
If a trust is something like a bag to store assets in, then think of a revocable trust as a nylon mesh beach bag. Medicaid can see everything in it, and if assets are otherwise countable the trust doesn’t make any difference.
Who is the trustee of a revocable trust?
Revocable trusts aren’t forever, so the laws in most states don’t treat them as shields against the potential loss of assets. When you create a revocable trust, you name yourself as trustee so you can continue to manage the trust’s assets.