Short-Term Bridge Loans for Estates: How Rubicon Mortgage Fund Facilitated a $430,000 Loan to a Trust

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%

The Bridge Lending Solution
Rubicon Mortgage Fund structured a bridge loan that met the estate’s immediate financial needs:
✔ Loan Directly to a Trust – RMF’s ability to lend to a trust allowed the beneficiaries to secure financing.
✔ Fast Closing to Meet Deadlines – The reverse mortgage was repaid on time, preventing penalties or foreclosure.
✔ One-Year Interest Reserve – The loan included an interest reserve, eliminating monthly payments for the first 12 months.
✔ Seamless Ownership Transition – RMF permitted the loan to be transferred from the trust to the siblings and then into an LLC, a level of flexibility unavailable with traditional lenders.

Exit Strategy: Transitioning to Bank Financing
Once the properties are stabilized and rented, the beneficiaries plan to refinance with a conventional bank loan. RMF’s bridge financing provided the estate with the time and liquidity needed to restructure ownership while preserving the property’s value.

Why Bridge Lending Works for Estates & Trusts
Traditional banks avoid lending to estates because they lack credit history, income, or financial track records. Private lenders like Rubicon Mortgage Fund, however, can:

✅ Lend to trusts and estates 
✅ Base loan decisions on real estate value, not borrower credit history
✅ Move quickly to meet time-sensitive obligations
✅ Offer flexible terms tailored to complex ownership structures

Conclusion
Rubicon Mortgage Fund’s $430,000 loan in American Canyon demonstrates the power of private lending for estate-owned real estate. Whether settling an inheritance, restructuring ownership, or securing liquidity, RMF provides tailored financing solutions that traditional lenders simply can’t match.
If you need financing for an estate or trust-owned property, contact Rubicon Mortgage Fund to explore your options.