What’s the Policy on buying a Fannie Mae Home as a Living Trust?

August 12, 2011 at 1:33 pm Leave a comment

by: Maria Hass

A question came up during a transaction I was handling for a recent client who was purchasing a Fannie Mae property as a primary residence. My client wanted to initiate an amendment to change their names, as owners, to a “Family Living Trust” prior to closing. Would Fannie Mae allow a “Family Living Trust” as the named buyers for a primary residence? Fannie Mae responded by saying, “We only allow natural persons to be owner-occupants. If the buyer changes to a Trust they would have to cancel and resubmit as an investor buyer. They would not be eligible during any First Look period nor would they or their agent be eligible for any owner-occupant promotions.” Obviously, my client decided to leave things as they were, with their actual names as “natural persons” to receive the 3.5 percent buyers’ closing cost assistance and to retain the $1,200 agent bonus for owner-occupant buyers.
My understanding therefore is, buying a Fannie Mae home as a “Living Trust” is only acceptable for investment properties not with owner-occupant/primary residents.
Lastly, when dealing with REO properties, two major rules come to mind: 1. The lender rules. 2. Buyer beware. The property is sold as-is without repairs.

Entry filed under: Arizona Real Estate, Chandler Real Estate, Foreclosures & Short Sales, Phoenix Real Estate. Tags: , .

What Really Happens at the Maricopa County Public Auction? Fannie Mae Charges Buyers a “Re-Keying” Fee

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed


Categories

Feeds


%d bloggers like this: