Inter Vivos Revocable Trust as Eligible Mortgagor
An inter vivos revocable trust is a trust that
- an individual creates during his or her 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.
Fannie Mae 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 B2-2-05, Inter Vivos Revocable Trusts.