Probate Loans

Estate Loans for Inherited Real Estate

Are you currently dealing with the loss of a loved one and require financing to settle an estate?

Crescent Lenders is here to assist you. We can fund your short term probate loan:

  • $200K to $5 million dollars
  • Direct private lender (not a broker)
  • We are respectful and understanding
  • Get financing in 5 to 7 days
  • Over a decade of experience

What is a Probate Loan?

Probate loans, also known as estate, trust or inheritance loans, provide short term financing against inherited real estate.

Traditional banks and financial institutions will not lend on properties in probate, hence the need for a private money lender to acquire financing.

Crescent Lenders is not highly concerned with your credit score or income, instead we evaluate loans based on the equity in your property. 

Industry standard probate loan rates for a hard money loan are in the range of 8%-10% with a 2 point fee.

While these rates are higher than traditional bank loans, a hard money loan is generally used for short term financing.


  • Immediate access to cash 
  • Easy application process
  • No need for a high FICO score
  • Preliminary distribution or buying out of other heirs
  • Nearly all property types are considered

Lending Guidelines

Interest Rates:Starting @ 7.99% (interest only)
Closing Time:5 to 7 Days
Location:Anywhere in California
Loan To Value Ratio:Up to 75% LTV
Loan Types:Purchase, Refinance, Cash-Out, Fix and Flip, Probate, 1031 Exchange
Amounts:$200K – $5M
Origination Fee:2 to 3 points, dependant on size and term
Lien Positions:First Trust & Second Trust Deeds
Underwriting Fee:$1500
Loan Term:6 to 60 months (extensions available)

Property Types

  • Single-family & Multi-family Investment Properties
  • Condominiums
  • Retail Centers
  • Office Buildings
  • Industrial & Warehouse
  • Hotels & Motels
  • Healthcare & Assisted Living Facilities
  • Special Purpose & Mixed Use
  • Parking Garages & Lots

Need an Estate Loan?

Have you recently inherited a piece of real estate and need short term financing to navigate the probate process?

Why Consider a Probate Loan?

The 3 most common reasons to use a probate loan are:

Preliminary Distribution/Buying out Siblings

If an heir wants to keep an inherited property, short term financing using an inheritance loan can be used to buy out the other heirs (usually siblings).

Once the heirs have agreed on the value of the property and determined the distribution of the state, an inheritance loan can provide the estate with cash.

This process enables the other heirs to be paid out quickly.

Once the heir has ownership of the title, they can refinance the inherited property with a more favorable traditional bank loan.

Settling Estate Costs

A probate loan can be used to relieve financial pressure before the estate is distributed.

All kinds of costs can arise due to an inheritance:

  • If a property is involved there are carrying costs such as insurance, utilities, maintenance, mortgage payments and property taxes
  • Other costs such as legal expenses, attorney fees, taxes or other obligations owned by the probate estate
  • Funeral and burial expenses

Preserving Tax Value

In the past few decades property prices have increased dramatically. 

There are 2 ways to use a hard money loan to capitalize on tax benefits:

  1. Step-Up Tax Basis Benefit
    Property transferred upon death from a parent to a child is excluded from capital gain tax liability and receives a step-up in basis to it's fair market value.

    The appreciation of the property that occurred during the descendent's lifetime is therefore tax exempt.

    The "step-up" tax basis would be maintained if you kept the property. 

    A probate loan could provide the necessary funding to buy out the remaining heirs of the property.
  2. Inheriting the Property Tax
    Property is generally reassessed at market value when it is sold or transferred.

    However, when ownership is transferred between parents or children it qualifies for a reassessment exclusion. 

    This allows an heir to use a probate loan to buy out the other heirs and keeping the property in the family, thereby inheriting the older property tax rate.

    For example, if a property was purchased in the 1970's and has dramatically increased in value, the heir would inherit the 1970's property tax rate.

Probate Loans FAQ

What is a hard money loan?

What is the difference between an estate, probate, trust or inheritance loan?

Can you borrow money from a Will or use inheritance as collateral?

How do you qualify for a probate loan?

Why consider a probate loan?

Why use a hard money lender?

Can I buy out my siblings?

Get funded in 5 to 7 days
LTV up to 75%
200k to $5 million
Nationwide private lender
(not a broker, avoid the extra fees)
Funding loans such as purchase, refinance, rehab, probate, 1031 exchanges, cash-out
All types of investment properties considered, residential, commercial and industrial

Crescent Lenders

999 Overland Ave, Suite 116
Los Angeles, California