Updated almost 10 years ago on . Most recent reply
Fannie Mae financed property counting
My wife and I are both on title for our principle residence, but she is the only one on the loan, and personally so. At the moment, for my own investment property financing purposes (not hers), I'm certain that our principle residence is counted by Fannie Mae guidelines because I am indeed on the title and the property is financed.
Can I remove the principle residence from the count by quit claiming my interest to my wife? We live in Georgia which is *not* a community property state.
Can i remove the principle residence from the count by our moving it to one kind of trust or another? If so, are there any restrictions on who is/are the trustee(s), trustor(s), or beneficiary(ies)? (The "trustor" question relates to whether or not a quit claim need precede the gift to the trust.)
Regarding the "trust" question, I've searched and searched before with no success. But I *may* have just found an answer. But then different folks have different opinions on things, so I'm continuing to post the question. The other possible answer is found if you search for "trust" on the page at https://www.biggerpockets.com/forums/49/topics/184876-the-ultimate-guide-to-using-conventional-mortgages-to-expand-your-portfolio . My reading of this suggests that a revocable trust won't do the job, but for me an irrevocable trust will do the job. That is, with an irrevocable trust, the primary residence will still count for my wife, who has personally guaranteed the loan. However, it won't count for me who has not personally guaranteed the loan. What do you think? I've been looking at irrevocable trusts anyway, but am still nervous about the irrevocable part. Of course, let's please not let this post digress into a discussion about that.