FAQ’s (Frequently Asked Questions and Answers about Fiduciary Mortgages)
Q. Who can borrow on a trust or estate property?
A. If using the entire estate or trust asset, the borrower must be the person in charge, administrator, executor, trustee or similar capacity, with sufficient court powers and authority.
Q. Who may sign for a loan?
A. Executors and Administrator of Estates, Conservators, Guardians, Trustees and other Fiduciaries may sign for many equity-based loan programs. It’s not uncommon for the borrower to sign on behalf of an estate or trust without have any share or beneficial interest in the property pledged.
Q. How are borrowers qualified?
A. Borrowers can choose between equity-only qualified–and other programs– which consider your credit and income as primary factors. Naturally, good credit and sufficient provable income will help you qualify for the best loan.
Q. Can I still get a probate fiduciary loan if my credit score is low?
A. Normally not a problem. Fiduciary loans are made to the estate or trust rather than the individual signing and are more equity-driven than credit qualified.
Q. What kind of interest rates and terms are available?
A. Loans made to probate estate (executors and administrators) or trust fiduciaries (trustees and successor trustees) require private money lenders, and are considerably higher rates
Q. Why can’t I just call my bank or go to any other mortgage company to get a loan?
A. Rarely do banks and mortgage companies have any expertise in lending on estate and trust owned property. Banks and most mortgage companies want make loan that conform to national guidelines and generate a large volume of turnover. Such lenders will not make these very specialized loans, since they are outside their investor’s expertise, require specialized knowledge, are often complicated don’t fit the overall lending guidelines of a banking business model that requires a loan.
Q. Can I get a loan to buy out my brother and sister, even if I don’t have a cash down payment?
A. Yes! With enough equity, your share of a property held in a probate estate or trust may be used in lieu of a cash down payment. We’ve helped hundreds of families with buy-out financing to those who wish to keep the family home or other property.
Q. How long will it take my loan to close?
A. We can close you loan in as few as 5-10 days, however probate and trust loans average 2-3 weeks. Allow more time if a court order to borrow is required.
Q. Can I close probate without paying off your mortgage?
A. Probably not. However, it may be possible to find a solution that still fits your needs.
Q. Does your loan require monthly payments?
A. Yes, however a loan be structured to pre-pay some of the payments out of the loan proceeds.
Q. Can I use another property as collateral for the probate loan?
A. This is often a solution when the primary property does noes not have sufficient equity nor is otherwise insufficient collateral for the loan requested
Q. The tenants who live in the property won’t let us enter. Can we still get a loan?
A. Yes, that won’t normally be a problem if the appraiser is unable to inspect the premises and enter all property rooms however it might affect the opinion of value, and could restrict the loan program choices, costs and/or terms of the loan.
Q. The property is currently vacant and needs work. Can we still borrow on it?
A. Yes! Our Blightbuster™ loan program is designed with just that purpose in mind; however this loan program restricts and reduces the total loan-to-value that may be borrowed
Q. How do I get started?
A. Begin by getting pre-qualified for your loan by completing and submitting the online Probate (Fiduciary) Mortgage Questionnaire. Review the short list of items required and prepare for your free, no obligation, phone consultation. We’ll contact you after we’ve received your questionnaire and review your best borrowing options with you directly.