What Is a Trust Loan? California Guide for Trustees and Beneficiaries
- Julian Perry
- Jun 10
- 2 min read
You just found out a property is held in a trust.
Maybe a parent passed. Maybe you're the successor trustee.
And now someone needs money. Fast.
Banks are saying no. And you're not sure what options even exist.
Let me break it down.
So what is a trust loan?
A trust loan is a mortgage made directly to a trust.
Instead of lending to an individual — a lender makes a loan to the trust itself.
The real estate held inside the trust is used as collateral.
Simple as that.
Why can't banks just do this?
Because banks want to lend to individuals.
They want a W-2. Tax returns. A name on title.
When a property is held in an irrevocable trust — the title is in the trust's name. Not yours.
Most banks won't touch it.
Private lenders like us? This is what we do.
When do you need a trust loan?
One beneficiary wants to keep the family home but others want cash
The trust needs funds to pay property taxes, legal fees, or maintenance
You need to buy out a sibling's share of the inherited property
You want to make repairs before selling the property
You need to access equity quickly while probate is still open
You're trying to qualify for Proposition 19 property tax protection
How does the process work?
Step 1 — Contact us with the property address and what you need.
Step 2 — We review the trust documents and property value. Usually same day.
Step 3 — We issue a term sheet with rates and loan amount.
Step 4 — We work with your trustee and attorney to close.
Step 5 — Funds are distributed according to the trust instructions.
Most trust loans close in 7 to 10 business days.
What do you need to qualify?
Not much compared to a bank.
The trust documents — so we understand the structure
Property address and estimated value
What you need the funds for
Your timeline
No W-2. No tax returns. No personal income verification for most programs.
We lend based on the property — not your paperwork.
Revocable vs irrevocable trust — does it matter?
Yes. Here's the quick version:
Revocable trust — the original trustee is still alive and can change the trust. Easier to get conventional financing. Banks will sometimes lend here.
Irrevocable trust — the original trustee has passed. The trust cannot be changed. Banks almost always say no. Private lenders are usually the only option.
We lend to both. But we specialize in the irrevocable situations that banks walk away from.
Have a trust or probate deal? Let's talk.
Call or text: (949) 874-1973
Email: loans@southcountycapital.com
California DRE License #01884316
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