Title is vested in Life Estate. This is also a Mobile Home that has been converted to Real Property. What is needed to make sure this runs through Underwriting correctly and smoothly?
We will need the life estate agreement and all remainder men counselled along with the borrower. As well as the following: FHA permits mortgages to be insured if the borrower’s interest in the property is a Life Estate. However, to encumber fee simple interest in the property, the borrower and all holders of any future interest in the property must execute the Deeds and Right to Cancel at Closing. Holders of future interest do not execute the Note or other loan documents. A copy of our internal checklist for manufactured housing has also been attached to help you identify what we will be looking for. Hope this helps, let us know if you need anything else.