Trust Loans in California

CA Trust Loans: Get Immediate Funding in as Little as 1 Week

What Are California Trust Loans?

California trust loans from Source Capital allow trustees and beneficiaries to access funds using real estate in their trust without having to sell. Instead, the trust real estate is used as collateral for a loan, which is then paid back over time.

Trust loans are often used in cases where one beneficiary wants to retain property in the trust, but other beneficiaries want to sell the property to have access to the cash, instead. A trust loan enables the beneficiary who wants to retain the assets to “buy out” the other beneficiaries’ interest in the trust.

Recently Funded Deals in California

We’re proud of our fast funding and transparent approval process for California borrowers. Here are a few recently funded hard money loans in California:

Santa Rosa, California Hard Money Purchase Loan
Condominium

$330,000

San Francisco, California Hard Money Refinance Loan
Condominium

$150,000

San Diego, California Hard Money Refinance Loan
Condominium

$200,000

Riverside, California Hard Money Refinance Loan
Single Family Residence

$175,000

Santa Rosa, California Hard Money Refinance Loan
Single Family Residence

$375,000

Fresno, California Hard Money Refinance Loan
Single Family Residence

$425,000

Riverside, California Hard Money Blanket Refinance Loan
Industrial Condominiums

$600,000

San Francisco, California Hard Money Refinance Loan
Single Family Residence

$850,000

San Jose, California Hard Money Refinance Loan
Single Family Residence

$1,075,000

These success stories highlight our commitment to short closing times, flexible loan terms, and a streamlined loan process—wherever you are in Southern California or the Bay Area.

Who Qualifies for a Trust Loan?

To secure a California Trust Loan, you must show both a clear right to borrow against trust property and that the real estate is in California. Key eligibility elements:

Eligible Trust Types

1) Revocable Trusts (Living/Family Trusts)

Revocable trusts are eligible for a trust loan if the trust includes language authorizing the trustee to borrow or pledge property and the trustee confirms their power to encumber trust assets.

2) Irrevocable Trusts

Irrevocable trusts can only be used to secure a trust loan if the trust agreement explicitly allows it. You may need the consent of other beneficiaries or a court order to borrow money using an irrevocable trust.

3) Probate Estates

Under California Probate Code, executors or administrators can borrow money using a probate estate. However, you will need court-issued Letters Testamentary or Letters of Administration.

Borrower Qualifications (You Provide)

In order to secure a trust loan, there are certain qualifications you need to meet. These qualifications may include:

A certified copy of the trust agreement or probate court order giving you the authority to borrow
Certification of Trust or Letters Testamentary/Letters of Admission
Proof of trustee appointment and any required beneficiary consents
Property located in California with no unresolved liens

Typical Loan Amounts & Loan-to-Value Ratios

California trust loans range from $100,000 to $5 million or more. Lenders typically offer:

First position financing up to 65% loan-to-value (LTV)
Second position financing up to 50% LTV

Actual loan amounts and LTV ratios will vary depending on the lender you’re working with, your property, and your location.

Loan Terms

INTEREST RATES	8.99% – 11.99% – First Position 11.99% -13.99% – Second Position	LOCATION	Arizona, California, Colorado, Minnesota and Texas only
LOAN AMOUNTS	$100,000 – $5,000,000	TYPES OF LOANS	Acquisition, Refinance and Cash-Out
LOAN DURATION	12-24 months	LIEN POSITION	First and Second Trust Deeds Only
ORIGINATION FEE	Starting at 2.0% of loan amount, depending on loan size and length of term	PROPERTY TYPES	Owner and Non-Owner Occupied Residential. Multifamily, Commercial, Industrial, Office, Retail, Mixed Use
LOAN TO VALUE	Up to 65% LTV in first position Up to 50% CLTV in second position	APPRAISAL FEE	None
CLOSING TIMEFRAME	10 business days or less	PREPAYMENT PENALTY	None

There are no minimum credit scores, employment requirements or financial minimums to qualify for a loan.

*All loans are secured by real estate for business purposes only

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Who Can Benefit from a California Trust Loan?

California trust loans are ideal for trustees and probate attorneys, beneficiaries, and professional advisors. Find out more below.

Trustees & Probate Attorneys

Estate administrators need liquidity to cover estate and inheritance taxes, attorney fees and court costs, and property upkeep and repairs. A California trust loan allows you to avoid court delays and forced property sales, expedite document review and escrow funding, and get access to dedicated legal support.

Beneficiaries Seeking Buyouts or Equalization Loans

When multiple heirs inherit a property, one beneficiary can buy out the others. Benefits include:

Preserving Proposition 13 tax base under Props 58, 19, and 193
Avoiding reassessment that raises annual property taxes
Receiving cash to compensate co-heirs while keeping the family home

Estate Planners, Tax Advisors & Fiduciaries

Professional advisors and estate planners recommend trust-backed financing for several reasons, including:

Structure intergenerational transfers with minimal reassessment risk
Cover short-term cash needs in estates and trusts
Guide clients through DRE licensing and Prop 58/19/193 compliance

How California Trust Loans Work

We’ve simplified the process into six clear steps so you can move from application to funding quickly.

Step 1: Confirm Trustee Authority (You Provide)

The first step is providing documents that confirm your legal trustee authority. Lenders will use these documents to verify your legal power to borrow and pledge trust property:

Copy of trust agreement or court order
Certification of Trust or Letters Testamentary/Administration
Proof of trustee appointment and any beneficiary consents

Step 2: Professional Appraisal & LTV Analysis

Next, you’ll need to have the property appraised to establish the fair market value. Lenders will consider the LTV and property type to determine the maximum amount you can borrow.

Step 3: Apply & Get Same-Day Pre-Approval

Next, submit the trust name, trustee contact, property address, and value estimate. You’ll receive conditional approval within hours, allowing you to confidently move into escrow without wasting time.

Step 4: Sign Loan Documents & Pledge Collateral

Now it’s time to execute the deed of trust or trust deed, trustee certification, and escrow instructions. It’s important to coordinate with title and escrow companies to ensure titles are clearly and properly recorded. You can use digital signatures to save time.

Step 5: Fast Funding via Escrow

Once the documents are in escrow, your loan will be funded via wire transfer in check in about 7-10 days after opening escrow. You don’t need to verify your credit score or income.

Step 6: Flexible Repayment & Exit Strategies

You have flexibility when it comes to repaying your California trust loan. Some of your options and exit strategies include:

Repay with proceeds from a future sale
Refinance into a conventional mortgage when personal credit and income are verified
Roll your balance into a new trust loan for continued liquidity
No prepayment penalties—exit on your terms

Client Testimonials

“We were very pleased with the service we received from Source Capital. Communication was clear and responsive, funding was quick, and terms were as agreed and proposed.”

Brian OverstreetPresident, Advera Health Analytics

“Sacha and his team were on point from our first call to funding. They were professional and easy to work with. We will definitely be using them for our future transactions”.

Mark O’ToolePresident, Pacific Coast Home Mortgage & Real Estate Inc.

“The staff at Source Capital has helped me create new income streams. They are consistent, direct and deliver every time.”

Michael KornAgent, Keller Williams Realty

“As a lender myself, working with Source Capital shows that there are still a lot of good people in our industry, and we will definitely be in connection to do future business together. Job well done.”

Anthony TrujilloMortgage Broker, Paramount Partners

“I have never dealt with a hard money lender before but I can tell you my experience with Source Capital was very positive. I highly recommend”

Courtney RothClient

“Recently completed another flawless transaction with Source Capital. Why would anyone want to go anywhere else? They’re the best.”

Marianne BordognaAgent, Keller Williams Realty

“The team at Source Capital Funding was fantastic. Their professionalism, speed and solid loan terms is why I will be coming back to close more business with them.”

Sergio AbbudSenior Loan Officer, Better Rate Mortgage

“The team at Source are consummate professionals who work efficiently and effectively. Simply stated- truly exemplary and professional people”

Paul ElamOwner, San Diego’s Real Estate

“Source Capital has been an absolute pleasure to work with throughout. These guys are on top of their game.”

Tyler HansonAssociate Broker, Cushman & Wakefield

“In all my years, I can confidently say they are the most professional, prompt, courteous, and efficient private lender I have ever worked with!”

Greg ShieldsOwner, GSI Appraisals

“They were very responsive and extremely helpful and would certainly use them again. I highly recommend their services.”

Alvin FuchsAgent, Keller Williams Realty

“Highly recommend Source Capital Funding if you need money fast and you value efficiency. I will go back to them again if I need funding in the future. “

Kendall HeathClient

“I have always had a highly professional and honest experience with everyone on their team and would recommend to anyone looking for financing.”

Andrew BellahOwner, The Bellah Group

“They are always so patient, helpful, and professional. and have helped me so much! This can be such a stressful process, but they make it all so easy.”

Lauren MarcusClient

“Smooth and fast transaction as the loan was funded in 8 days. They are a pleasure to work with – Strongly Recommended.”

Borna EftekariAgent, Farmers Insurance

Why Choose Source Capital for California Trust Loans?

Experience: We have over 40 years of proven trust loan expertise.
Speed: We’ll fund your loan within days—not months.
Personalized Service: Every trust is unique, and so are each of our trust loans.
Reliability: We have an exceptional reputation and thousands of satisfied clients nationwide.
Compliance Assistance: Our expert guidance helps you with California Proposition 58 and Proposition 19 tax benefits.

Fast Funding and Easy Qualification

Source Capital understands that, sometimes, you need funding fast. Our trust loans can close in as little as 7-10 days, much faster than traditional lenders or financial institutions.

Our trust loans are easier to qualify for, too. We use an asset-based lending model. That means we’re more interested in your property value than we are in your credit score, employment, or income.

We offer fast loan approvals, flexible lending terms, competitive rates, and transparent terms—never any hidden fees or unexpected charges.

Get Your Trust Loan Today

If you need a trust loan secured by California real estate, we’re here to help. Our trust loan specialists are ready to guide you every step of the way, ensuring a quick and smooth transaction and favorable loan terms.

Trust loans don’t have to be complicated. Let Source Capital simplify your funding experience today.

Contact Source Capital Today.

California Trust Loans: FAQ

What Are Common Uses for a Trust Loan?

Common uses include buying out co-beneficiaries, accessing cash liquidity, and avoiding property tax reassessment under Propositions 58 and 19.

How Does a Trust Loan Avoid Property Tax Reassessment?

Trust loans help maintain Proposition 58 and Proposition 19 benefits, preserving lower property tax rates for beneficiaries handling intra-family property transfers.

What Are the Disadvantages of a Trust in California?

Disadvantages may include potential complexity and costs of setting up and managing the trust, but these trusts offer significant estate planning benefits.

Can You Get a Loan on a Trust?

Yes, Source Capital provides loans using trust-owned real estate as collateral, allowing trustees or beneficiaries to access funds without selling the property.

What Types of Trusts Can Qualify for a Loan in California?

Loans are available for revocable and irrevocable trusts, provided the trust holds California real estate eligible as collateral.

Can Trustees Borrow Money from the Trust?

Trustees can use trust real estate as collateral for a loan, facilitating funds access without directly borrowing from the trust assets.

Are Trust Loans in California Fast to Process?

Trust loans from Source Capital can close in as little as 7-10 days, offering rapid access to funds compared to traditional lenders.

How to Get Approved for a California Estate Loan

1. Apply Online

It takes minutes to complete our simple, online application to get prequalified for a loan.

2. Get Approval

After underwriting your loan, we will provide you a written Loan Commitment providing loan terms for approval.

3. Loan Funded

In a matter of days, not weeks like most lenders, the loan is funded through escrow and funds wired to you directly.

4. Pay Monthly

You make monthly payments via mail, phone or direct deposit. It’s that easy.

Get Funded Fast – Apply Today!

Provide us some brief information about your hard money needs and a decision maker will get back to you as soon as possible to discuss.

What We Offer

Same Day Approvals
Rates starting at 8.99% Interest
Poor Credit OK
No Debt to Income Requirements
No Prepayment Penalties
No Appraisal Fees
$100,000 to $5,000,000 Loan Amounts
Residential, Commercial, Industrial
1st & 2nd Trust Deeds
Up to 65% Loan-to-Value (LTV)
Up to 50% Combined LTV (2nd Loans)
Closings in 7-10 Days

NOTE: All loans are secured by real estate in AZ, CA, CO, TX and MN ONLY. We do not fund unsecured loans or loans for personal use. Please call us at 888.251.0861 if you are unsure of these parameters.

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