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What Is a Prop 19 Equalization Loan?

Prop 19 Equalization Loan

When a parent passes and leaves a property to multiple beneficiaries — not everyone wants to keep it.

One sibling wants to stay. Others want cash. Now what?

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Selling the family home isn't always the answer.


An equalization loan is.

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Here's how it works:

  • One beneficiary borrows against the inherited property

  • They use the loan to pay out the other beneficiaries in cash

  • The property stays in the family — and the low property tax base transfers under Prop 19

  • No forced sale. No family conflict. No losing the home.

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Why Prop 19 makes this urgent:

Under Proposition 19, the property tax transfer benefit only applies if the inheriting child moves in and uses the property as their primary residence — and there are strict deadlines.

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If you miss the window — you lose the tax benefit permanently.

That's why speed matters.


We close in 7-10 business days.

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Who needs this loan:​

  • One beneficiary wants to keep the inherited property

  • Other beneficiaries need to be bought out in cash

  • The estate needs to equalize distributions without selling

  • You're working against a Prop 19 deadline

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What we need to get started:

  • Property address and estimated value

  • Number of beneficiaries and approximate buyout amount

  • Trust or estate documents

  • Your timeline

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No W-2. No tax returns. No income verification for most programs.

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