I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. Trust-held mortgages are routine in my practice — I know what lenders need to see and how to get trust documents reviewed quickly. Call (800) 239-1103.
Holding your California home in a revocable living trust is one of the most effective estate planning tools available — it avoids probate, simplifies asset transfer, and gives you control during your lifetime. The good news: major mortgage lenders (including Fannie Mae and Freddie Mac) explicitly allow financing when title is held in a qualifying trust.
What Lenders Require for Trust-Held Property
To qualify for a conventional mortgage with title in a revocable living trust, lenders typically require:
- The trust must be revocable (you can retake personal title at any time)
- The borrower must be the trustee of the trust
- The borrower must also be a beneficiary of the trust
- The lender must review and approve the trust document before closing
- The trust purpose must be estate planning (not business or asset protection)
Which Loan Types Allow Living Trust Title in California?
- Conventional (Fannie/Freddie): Yes — explicitly allowed with trust review
- FHA: Generally yes, same requirements as conventional
- VA: Generally yes — veteran must be trustee and beneficiary
- Jumbo: Yes — most portfolio jumbo lenders accept living trusts
The Trust Review Process
Your lender will request a copy of your trust document (or an “Abstract/Certification of Trust”). They review it to confirm it meets the requirements above. This adds a few days to the process but rarely causes issues with a properly drafted revocable trust. In my experience, having the trust document ready before application — rather than scrambling for it during underwriting — is the single biggest thing borrowers can do to keep the timeline on track.
Buying or Refinancing a Home Currently Held in Trust
If the home is already in your trust, you apply for the mortgage as an individual (as trustee), and the title remains in the trust throughout. If you’re buying, you can take title directly into the trust at closing — your attorney will instruct the title company on the vesting language. This is standard in California and title companies handle it routinely.
Irrevocable Trusts: Different Rules
Irrevocable trusts are more complex. The grantor generally cannot use the asset for a personal mortgage. Financing for irrevocable trust properties typically requires a commercial or portfolio lender. Consult a California estate attorney if your situation involves an irrevocable trust.
Why Set Up a Living Trust in California?
- Avoids the California probate process (which can take 1–2 years and cost 2–4% of the estate)
- Provides seamless transfer of assets to heirs
- Allows incapacity planning (successor trustee takes over if you’re incapacitated)
- Privacy — unlike a will, trusts don’t become public record
Frequently Asked Questions — Mortgage in a Living Trust California
Can I get a mortgage on a California home held in a living trust?
Yes. Conventional, FHA, VA, and jumbo lenders allow financing on California homes held in revocable living trusts, provided the borrower is the trustee and a beneficiary. The lender reviews the trust document before closing — typically a full copy or an attorney-prepared Abstract/Certification of Trust. This is a standard process for lenders who do business in California, where living trusts are extremely common. I’ve closed many trust-held mortgages and know which lenders review trust documents quickly and which ones slow the process down.
What documents does the lender need to see for a trust mortgage in California?
Lenders typically need a full copy of the trust document or an attorney-prepared Abstract/Certification of Trust. They review it to confirm: the trust is revocable, you are the trustee, you are a beneficiary, the trust was created for estate planning purposes, and the trust does not have provisions that would impair the lender’s security interest. Most properly drafted California revocable living trusts pass lender review without issue. If your trust was drafted by a California estate attorney, it almost certainly meets lender requirements.
Can I buy a California home directly into a living trust?
Yes. At closing, the title company vests title in the trust name (for example, “John Smith, Trustee of the Smith Family Living Trust dated January 1, 2020”). The mortgage is in your personal name as trustee. This is completely standard in California — title companies do this routinely, and there’s no additional cost to take title in trust at closing. If you’re refinancing a home already in your trust, the property stays in the trust throughout the process.
Talk to Michael Directly
DiVita Home Finance | Tiburon, CA | In lending since 2000, founded DiVita Home Finance in 2007. Michael DiVita DRE #01372066 | NMLS #241655. Company DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
