Can a beneficiary of a trust get a HELOC on the property?

[Royce Talbo]

Can anyone tell me if I as a beneficiary, can take out a HELOC on my mothers property that is in a revocable trust for me? She is the the trustee and I am the beneficiary, I have a stable job and can qualify for the HELOC, but she just started her own company this year and doesnt have the years of experience to qualify for a HELOC on her own. Also she doesnt want to be on the HELOC or loan if possible, but wants me to be able to access the money for my investments.

[Henry M.]

Originally posted by @Babatunde Onwukeme:

@Henry M. any updates? were you given the heloc account with the properties in the trust? 

Yes, I was able to... As long as it is consistent with Fannie Mae (inter vivos trust) and Property Code (Texas is my state). I was denied unofficially 12+ times and officially three times, but I finally was approved. It took me four months to pull off.

Here are the requirements for Fannie Mae:

B2-2-05: Inter Vivos Revocable Trusts (10/31/2017)

Here's the short version of Texas Property Code (I am sure similar elsewhere):

Texas Property Code § 41.0021. Homestead in Qualifying Trust

This is the long version of the property code in Texas:

PROPERTY CODE TITLE 9 TRUSTS SUBTITLE B. TEXAS TRUST CODE: CREATION, OPERATION, AND TERMINATION OF TRUSTS CHAPTER 112. 

Here's a contact who I believe does loans on Irrevocable Trusts - Doing a loan inside a Revocable Living Trust is hard enough, but Irrevocable Trusts, wow! - Check out call. BTW, I believe he only does HML on these types of trusts in California. Click link below:

021: Making Loans to an Irrevocable Trust Is Possible. Here’s How.

At the end of the day, it was difficult, but worth it... Did spend thousands to get it right. Not by choice... Freaking Attorneys need to make their house payment and get their girlfriend boobs (sarcastic).

Fannie Mae is across the board, however where the problem lies is the lender... I went through a dozen lenders (as in researched and contacted) before I was able to find a lender who would not force me to pull out of trust, then back in.

If any of this helps you please VOTE. If you want a little bit more info, feel free to contact me directly... Either way, this info, although easy to find, is difficult when applying. 

This is my two cents and it was a grind... If anyone knows about loans, your finances are placed on hold especially if the debt ratio is tight. It was for me considering I lost my job at the end of October 2018. In other words, my finances were less than two years and not applicable. Yet, thank God I pulled it off.