Trust Lending for Medicaid Asset Protection Trusts: Your Clients Do Have A Choice!

Guest blogger Frank Melia of Quontic Bank answers questions regarding trust borrowing options for clients who have transferred their property into a Medicaid Asset Protection Trust (M.A.P.T.).

Why most Banks do not offer Mortgages to Properties held in M.A.P.T.s:

Historically, Brokers & Banks follow guidelines set by Fannie Mae & Freddie Mac and they do not allow borrowers other than individuals (no corporations or trusts).   As a federally chartered Bank, Quontic Bank offers our proprietary Portfolio loan programs where we ALLOW Trust ownership.  We look towards the grantor(s), trustees, and beneficiaries as our loan guarantor(s).  We may even offer a Non-Recourse Mortgage if the loan to value is lower than 50%.

What Borrowing Options do we Offer to M.A.P.T.s: 

Portfolio Loan Programs which are a 30 year amortization loan with either a 5/1 or 7/1 ARM & a Home Equity Conversion Mortgage line of credit.  Whichever loan program we can offer will require all loan proceeds to be deposited into a trust checking account controlled by the trustees.

Situations where Clients are seeking financing:

1. Existing HELOC is recasting or has a balloon payment coming due
2. Home Health Care for Spouse/Parent
3. Home Improvements—-to accommodate aging in Place
4. Help Grand Children with debt, college educations, etc.

How we are a Resource:

We have been working closely with Elder Law Attorneys around the country for 5 years now and our division specializes in Trust Borrowing Options.  We are a phone call or email away from reviewing your clients’ trust and financial documents.  We will review and have an overview prepared within 48 hours.

Learn More About our Lending Capabilities:

If you have clients and/or prospective families that ask about refinancing or the need for financing with a trust and want to learn how we can assist contact us at: tbo@quonticbank.com Call us at 1-888-954-7463

We offer financing in All 50 States and will review your clients’ trust documents and provide review and borrowing options within 48 hours.

Written by Frank Melia, CMPS

Frank Melia is a Vice President of Lending at Quontic Bank – a federally chartered bank based in New York that specializes in trust borrowing options in All 50 States.

Frank can be reached directly at fmelia@quonticbank.com / 1-888-954-7463