FNMA & Land Trusts

"To flip their loans successfully lenders have to follow FNMA's strict underwriting standards. And those standards don't allow lending to fictitious legal entities such as trusts. "

Not entirely true. I have been a mortgage broker for ten years and I have refinanced properties with FNMA loans that were in a land trust. All it takes is an opinion letter from the closing atty that the trust is valid - and a lender who knows that FNMA allows it (that's the hard part).

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