Can I Purchase a Home With a Living Trust?

Can I purchase a home with a living trust? Yes, but there are specific requirements in order for the trust to be eligible for financing. In order to be eligible, the borrower must include:

  • The settler, or the person who created the trust, and
  • The beneficiary, or the person who is designated to benefit from the trust, and
  • The trustee or the person who will administer the trust for the benefit of the beneficiary, the borrower.

Eligible borrowers include:

  • One or more borrowers with one living trust, or
  • Two or more borrowers with separate living trusts, or
  • Multiple borrowers with one or more holding title as an individual and one or more holding title as a living trust.

Eligible properties include:

  • 1-4 unit primary residences
  • 1 unit second homes

The trust must have been legally created and exist under applicable law. The following documentation is required:

  • Attorney’s Opinion letter from the borrower’s attorney or our company’s attorney verifying all of the following:
  • The trust is revocable,
  • The borrower is the settler of the trust and the beneficiary of the trust,
  • The trust assets may be used as collateral for a loan,
  • The trustee is:
  • Duly qualified under applicable law to serve as trustee,
  • Is the borrower,
  • Is the settler,
  • Is fully authorized under the trust documents and applicable law to pledge, or otherwise encumber the trust assets.
  • A complete copy of the trust documents certified by the borrower to be accurate, or a copy of the abstract or summary for jurisdictions that require a lender to review and rely on an abstract or summary of trust documents instead of the trust agreements must be provided.

Exception for Trust Certificate Authorized States: In lieu of the Attorney’s Opinion letter and copies of trust documents, the title company Trust Certification is acceptable for the following states:


If a title company Trust Certification is used, it is not required to submit information to the Credit Policy Department. The same terms and conditions apply as shown above for the Attorney’s Opinion.

Other title and closing requirements:

  • The title to the property is vested in the trustee on behalf of the trust (or such other customary practice);
  • Title binder may not contain any exceptions to coverage based on the mortgaged property being held by the living trust;
  • The Note must be executed individually by the settler and by the trustee on behalf of the trust;
  • The Mortgage or Deed of Trust is executed by the trustee on behalf of the trust. The Revocable Trust Rider must be used with the Mortgage or Deed of Trust; and
  • The date of the Trust must be reflected on the note as part of the description below the Trustee’s signature, e.g. Jane Doe, Trustee of the Jane Doe Trust dated April 1, 2000.