Frequently Asked Questions

Potentially. Some mortgage programs allow eligible trusts to hold title to a property, subject to specific requirements.

The lender may need to review the trust documents and confirm details such as the type of trust, trustee authority, beneficiaries, and who will be responsible for the mortgage.

Not every trust structure is acceptable under every loan program.

If you plan to buy or refinance a home held in a trust, tell us before proceeding so we can review the applicable financing requirements.

For questions about creating or modifying a trust, we recommend consulting a qualified attorney.

Possibly. The lender will need to determine whether the trust and ownership arrangement meet the requirements of the proposed loan program.

Depending on the transaction, this may involve reviewing:

• Trust agreements or certifications
• Trustee information
• Title and ownership records
• Borrower and signing requirements
• Other lender-specific documents

The fact that a property is held in a trust doesn’t automatically prevent refinancing or financing, but it may affect which programs are available.

We’ll help identify the lender’s requirements and coordinate the mortgage-related review.

Some investment-property and commercial loan programs allow eligible properties to be purchased through a limited liability company (LLC).

However, traditional residential mortgage programs often have different requirements regarding individual borrowers and ownership.

The available financing may depend on the property type, intended use, LLC structure, borrower or guarantor qualifications, and lender guidelines.

Tell us about your intended ownership structure before making an offer or applying.

We can help you determine whether an eligible loan program accommodates the LLC arrangement you’re considering.

Potentially. Some DSCR lenders allow investment properties to be financed through eligible LLC structures.

The lender may review the LLC’s organizational documents, ownership, authorized signers, property information, and any required personal guaranties.

Depending on the program, credit, assets, down payment, reserves, and rental income may also be evaluated.

We’ll review how the property will be held and determine whether available investment programs can accommodate the proposed structure.

For legal or tax considerations involving LLC ownership, consult the appropriate professional.

Before transferring title after closing, it’s important to understand the potential implications.

Your mortgage documents may contain transfer restrictions or a due-on-sale provision.

Some transfers into eligible trusts may receive protection under applicable law, but not every transfer is treated the same way.

Moving a property into an LLC or another entity can create different issues involving the mortgage, title, taxes, or homeowners insurance.

We recommend discussing the proposed transfer with your loan servicer and qualified legal or tax professionals before making any changes.