I recently had a living revocable trust created and would like to purchase a house in its name. My goals are privacy in ownership and probate avoidance.

I understand that placing a homestead in the trust could potentially cause a loss of bankruptcy protection.

I also found that it's important to obtain mortgage lender approval prior to deeding any property to the trust.

Is anyone aware of any other things to check or "gotchas" related to the use of a trust?

Could trust ownership make refinance difficult?

You're only going to be able to use small local banks with in house loans. Shorter terms, higher rates. Much simpler underwriting though.

Conventional loans CAN vest in a trust as long as it is revocable so no issue there.

The agencies allow financing to trusts.

https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B2-Eligibility/Chapter-B2-2-Borrower-Eligibility/1032996281/B2-2-05-Inter-Vivos-Revocable-Trusts-10-31-2017.htm

Good questions. I'm still wading through this and trying to determine if privacy in ownership / probate avoidance is worth the risk.

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You're only going to be able to use small local banks with in house loans. Shorter terms, higher rates. Much simpler underwriting though.

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The big banks will allow for closing in a trust (with conventional loans) as long as you provide the trust document showing that it is revocable and that the settlor and trustee are one and the same.

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Won't you lose your homestead exemption?

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You can retain your homestead exemption as long as the trust is a "qualifying trust" which basically means that the settlor / trustee has the right to occupy and use the house as a primary residence rent for life or until the trust is revoked.

No worries about losing the homestead exemption if the house is occupied by the Grantor of the trust.