Trust Loans in California

Trust Loans for Beneficiaries & Trustees

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Trust Loans from North Coast Financial

North Coast Financial is a California direct lender specializing in providing trust loans to beneficiaries and trustees. The trust must own California real estate to serve as collateral for the loan. Our trust loan process allows for beneficiaries to take advantage of Proposition 58 which prevents a property tax reassessment on transfers from parents to children. Lending to a trust can be completed as quickly as 1-2 weeks. North Coast Financial also provides probate and estate loans.

With more than 37 years of trust lending experience, North Coast Financial provides loans to trusts with fast approvals and funding, flexible lending criteria and competitive rates with no hidden fees. Contact North Coast Financial now and have your trust loan funded fast.

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Why Choose North Coast Financial?

Recently Funded Trust, Estate and Probate Loans by North Coast Financial

Trust Loans California

What is a Trust Loan?

A trust loan is a specialized type of loan typically only made by private money lenders. Conventional lenders such as banks and credit unions are generally not able to provide this type of loan as the borrower does not currently have their name on title of the real estate. North Coast Financial is able to make a trust loan directly to the trust and then have a beneficiary or trustee assume the loan.

The trust agreement must allow for a loan from the trust to the beneficiary (or trustee) to borrow against the real estate. Trusts commonly allow for the trustee to obtain a trust loan for the benefit of the trust or beneficiaries. Trustees can encumber and pledge assets of the trust and guarantee debts for the benefit of the trust and beneficiaries.

Trust Loans to Beneficiaries

Trust loans are frequently used by beneficiaries (siblings, heirs) who wish to divide an interest in trust-owned real estate assets. Often one of the beneficiaries wants to maintain ownership of the real estate while other beneficiaries want cash in exchange for their interest in the property. Trust lending solves the problem by providing fast and flexible funding for the beneficiaries.

Lending to a trust involves making the loan directly to the trust and securing the loan against real estate assets owned by the trust. The successor trustee will need to approve of the trust loan and sign the loan documents and disclosures. In many cases, a successor trustee or beneficiary of the trust will need to provide a personal guarantee for trust loan.

Lending to a Trust (Irrevocable or Living)

Lending to an irrevocable trust requires approval and action from the successor trustee(s). The successor trustee will be required to review and sign various loan documents and disclosures related to the irrevocable trust loan. Lending to a living trust (revocable trust) would be handled by the current trustee.

Lending to a trust typically takes 1-2 weeks to fund as long as there are no issues with title and trustee is able to review, sign and return the trust loan documents and disclosures in a timely manner.

Proposition 58 – Avoid Property Tax Reassessment

Trust loans can also help a beneficiary utilize Proposition 58 in order to avoid a property tax reassessment. Proposition 58 allows for the exclusion of a property tax reassessment for transfers from parents to children. A trust loan can save the beneficiary thousands of dollars per year in property taxes going forward.

Consult an attorney or a tax professional to ensure the transfer is handled correctly.

North Coast Financial Trust Loan Program

  • Trust Loan Program

Loan Application Approval TimelineSame day approval available
Time to Fund Loan1-2 weeks
Property TypesResidential (Single family, multi-family), Commercial
Loan Amounts$20,000 – $3 Million+
Loan Terms1-3 years
Lien Position1sts, 2nds
Loan to Value (LTV)1sts – Up to 70-75% of current value – 2nds – Up to 65% CLTV
FeesNo appraisal fees (in most situations) and no hidden fees
Trust Loan Interest Rates and PointsPlease contact us for information on current rates and points

Trust Loan Frequently Asked Questions:

A trust loan is a loan against real estate assets within a trust, typically for the benefit of the trustee or trust beneficiaries.

A trust is a separate legal entity which holds assets on behalf of beneficiaries. The trust specifies how the assets are passed to beneficiaries. Holding assets in a trust is popular as the assets do not have to go through the probate process upon the passing of the trustor.

Probate is not required to change the title of the assets when the trustor of the trust dies. The probate process in California can take 12 to 18 months and require various fees and taxes to be paid.

North Coast Financial can enable a trustee to borrow against assets within an irrevocable trust. The trust must allow for borrowing against trust assets for the benefit of the trustee or beneficiaries of the trust. The trust must own California real estate to serve as collateral for the trust loan.

An irrevocable trust can obtain a mortgage/loan from North Coast Financial if the trust owns California real estate. The trust must allow for the successor trustee to obtain a loan against trust assets for the benefit of the trustee or beneficiaries. The loan will be made directly to the trust and the successor trustee or beneficiary will be allowed to assume the loan.