Vesting Title In Entities
What occupancy’s are allowed?
We allow vesting in entities for all transaction types and occupancies.
Vesting in entities is available on all products.
What types of entities are allowable for vesting?
We will vest in entities including trusts (revocable and irrevocable), LLC’s, partnerships & corps. For an irrevocable trust, we will need to review to ensure it’s not too restrictive so you will need to send to us in advance.
Who is the qualifying borrower?
While title may be vested in an entity, the borrower must be a natural person who completes the loan application and whose social security number, employment, assets and credit are used to qualify for the loan. The borrower is personally responsible for the indebtedness.
Who is the Mortgagor?
The entity with vested title in the property is the mortgagor. The mortgagor will sign the Mortgage/Deed of Trust and any related Riders.
So the note will be in the individuals name and the DOT/Mortgage can remain in the business name?
What types of trusts are acceptable?
Inter-vivos revocable trusts are always acceptable. We allow irrevocable trusts if the term extends beyond the term of our loan but those can’t be amended to meet our requirements (the instances where you run into trouble on these is when one of the settlors has died but we can still review it for possible qualification). We can always review the trust with a $250 upfront fee.
The loan is in his name as an individual but you will allow him to vest in his entity?
Yes – the borrower signs the note as an individual and signs the DOT in their capacity within the entity.