Traditional banks often hesitate to lend to estates and trusts due to their lack of credit history, leaving many borrowers without viable financing options. As a private lender, Rubicon Mortgage Fund (RMF) specializes in providing solutions where conventional lenders cannot. A recent $430,000 refinance in American Canyon highlights how private lending bridges the gap, allowing an estate to meet critical financial deadlines.

Financing a Trust-Owned Property
In this case, the borrower was the trust that owned two single-family, non-owner-occupied homes in American Canyon, a suburban area near the Napa River. Unlike traditional loans made to an individual, this loan was structured specifically for an estate—a unique challenge that private lenders like RMF can navigate with ease.

Challenges the Estate Faced
The estate required financing for two key reasons:

1. Reverse Mortgage Payoff Deadline – The first home carried a reverse mortgage that required full repayment within 30 days.
2.  Property Transfer to Beneficiaries – The estate planned to distribute the property and loan to two beneficiaries, who would then transfer the assets into a newly formed limited liability company (LLC).

With no personal credit history or income attached to the loan, traditional banks would not provide financing. However, RMF evaluated the deal based on the underlying real estate, not the creditworthiness of the estate.

• Property Details & Loan Structure
• First House: 1,134 sq. ft. on a 6,070 sq. ft. parcel (encumbered by the reverse mortgage).
•  Second House: 1,416 sq. ft. on a 6,011 sq. ft. parcel (free and clear).
• Loan Amount: $430,000
• Combined Loan-to-Value (CLTV): 55%