A beneficiary buyout loan provides the cash a staying beneficiary needs to purchase the departing beneficiaries' shares in an inherited California property. The loan is secured by the trust or estate's interest in the real estate. You do not need clear title in your own name to apply.
This page is for informational purposes only
It does not constitute legal or financial advice. Please consult a qualified California attorney before taking action on any inherited property.
What We Fund and How Much
Loan amounts generally range from $30,000 to $5,000,000, depending on the property value and loan-to-value parameters. Most buyout loans are structured at 60% to 75% of the current appraised value of the property.
Here is what that means in practice. If the property appraises at $1,200,000 and we lend at 65% LTV, the maximum loan is $780,000. Whether that covers the full buyout depends on how much each departing beneficiary is owed. In most cases, the staying beneficiary is buying out one or two siblings rather than needing to borrow against the full property value.
We lend on residential and commercial properties. We lend on trust-held property, probate estate property, and property in the process of being distributed. We do not require income verification in the same way a conventional lender does. Underwriting is primarily based on the property value and the structure of the trust or estate.
Rate Range and Fee Schedule
We believe the people who need these loans most deserve to know what they cost before they make a phone call.
| Item | Range |
|---|---|
| Interest rate (per year) | 9.5% – 10.95% |
| Origination points | 1.25 – 1.95 points |
| Appraisal (in-house BPO) | No charge |
| Lender document fee | No charge |
| Prepayment penalty | None |
| Title and escrow | Standard California rates |
To put this in concrete terms: a $600,000 buyout loan at 10% with 1.5 points in origination carries $5,000 in monthly interest and $9,000 in origination costs at closing. If you refinance into a conventional loan after six months, your total cost of the buyout financing is approximately $39,000. For most families preserving a valuable California home or a Prop 19 tax basis, that cost pays back quickly.
No surprise fees
We do not charge lender document fees or appraisal fees. We conduct our own in-house BPO valuation at no cost to you. The fee schedule above is the complete picture.
Timeline From Application to Wire
This is where we differ most from what people expect. We do not need months. A straightforward buyout loan can fund in as little as seven to ten business days from the time we have a complete application.
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Days 1 to 2: Application and term sheet
You submit the application and supporting documents. We review the trust or estate documents, confirm the property details, and issue a term sheet.
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Days 2 to 5: Property valuation
We conduct our in-house BPO valuation. If additional review is needed for a complex or higher-value property, we order an independent appraisal. If speed is critical, we can use our BPO for initial qualification.
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Days 5 to 8: Underwriting and title
Underwriting reviews the valuation, confirms title is clear, and issues a loan commitment. Title and escrow are opened.
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Days 8 to 12: Closing and wire
Loan documents are prepared. You sign. Escrow closes. Funds wire to the departing beneficiaries.
What slows deals down: title complications such as old liens or unprobated interests, trust documents that are unclear or contested, or a co-beneficiary who changes their mind about the buyout. We will tell you upfront if we see any of those issues.
Who Qualifies
You qualify for a beneficiary buyout loan if all of the following are true:
- The property is in California. We are California-only specialists. We know the state's probate and trust laws, the quirks of each county's court, and the local real estate market well enough to underwrite accurately.
- The property is real estate. Residential, multi-family, or commercial. Vacant land generally does not qualify.
- There is adequate equity. The loan amount needs to fit within 60% to 75% of the current appraised value, with room for the loan plus any existing liens on the property.
- You are a beneficiary or trustee of the trust or estate that holds the property. You do not need to hold title in your own name yet.
- The co-beneficiaries agree to the buyout. We cannot fund a contested buyout. If co-beneficiaries are unwilling to be paid out, that dispute needs to be resolved before we can lend.
We do not require a minimum credit score, though we do review credit as part of the overall picture. We do not require W-2 income or traditional employment verification. We have funded loans for retirees, self-employed borrowers, and beneficiaries who have no income outside the inherited asset.
What Documents You Will Need
Having these ready before you call shortens the timeline significantly:
- Trust or probate documents: The trust agreement (at minimum the relevant sections), or Letters Testamentary / Letters of Administration for probate estates.
- Preliminary title report or recent title insurance policy: We order our own title, but having this in advance can flag issues early.
- Property information: Address, recent tax bill, any existing mortgage statements, HOA information if applicable.
- Identification: Government-issued photo ID for the borrower and any co-signers.
- Agreed buyout terms: A summary of what each departing beneficiary will receive, signed by all parties or at minimum in writing.
- Recent comparable sales (optional): Not required, but helpful for a fast initial review.
Three Recent Buyouts We Funded
A Glendale trust property, three siblings
Two of three siblings needed their inheritance paid out so the third could keep the family home. We funded a $740,000 loan in 11 business days. The staying sibling filed the BOE-19-P within the month and preserved a property tax assessed value of $195,000 on a home now worth $1,400,000. Her annual tax savings compared to full reassessment: approximately $14,400 per year.
A San Jose probate property, two heirs
One heir wanted the property. The other wanted cash and had a time-sensitive need. The estate was six months from closing. We funded a $480,000 probate loan in nine business days, the departing heir was paid, and the estate later distributed the property to the staying heir with the loan already in place for refinance.
A Long Beach property, one sibling buyout, Prop 19 timing
One sibling had 90 days before the Prop 19 one-year clock ran out. She needed to move fast. We funded a $390,000 buyout in eight business days. She filed the BOE-19-P three weeks later. The deal closed with 60 days to spare.
Frequently Asked Questions
Can I get a buyout loan if my siblings and I disagree on the value?
Not until you have an agreed value. Most families resolve this by hiring an independent appraiser both sides accept in advance. We can recommend appraisers in most California counties if that would help.
What if there is already a mortgage on the inherited property?
The existing mortgage does not disqualify the loan. We factor it into the loan-to-value calculation. The buyout loan will either pay off the existing mortgage and give the staying beneficiary a clean slate, or it will sit behind the existing mortgage in lien position, depending on the loan structure. We will explain both options during the initial conversation.
Can I use this loan to buy out more than two siblings?
Yes. We fund buyouts of any number of co-beneficiaries. The loan amount just needs to be large enough to cover the combined buyout payments within the LTV limits.
What happens to the loan when the trust is wound down?
The loan transfers with the property. When the staying beneficiary takes clear title, the loan is in their name and they can carry it until they refinance into a conventional product.
Do you lend on properties outside California?
No. We are California specialists.
Ready to Move Forward?
Call us or reach out and we will review your situation the same day and give you a straight answer about whether we can help.
Call 760-722-2991