Inter Vivos Revocable Trust as Eligible Mortgagor

An inter vivos revocable trust is a trust that

• an individual creates during their lifetime;

• becomes effective during its creator’s lifetime; and

• can be changed or canceled by its creator at any time, for any reason, during that individual’s lifetime.

Homium 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 this topic.

Note: A trust must meet FHomium’s revocability and other eligibility requirements at the time the loan is approved. Trust eligibility is not affected if the trust documents contain a provision that the trust will, in the future, become irrevocable upon the death of one of the settlors. However, such a change in the trust structure after approval of the mortgage loan may affect the eligibility of the trust as a mortgagor in a subsequent loan transaction.