Financing a property held in a trust

[Eugenio G.]

I’m the co-trustee of a family trust that holds a single family rental and my father’s primary. Both are paid in full. I’m planning to get a loan from the rental ($400-500K) as seed to our next purchase.

Title is held by the 3 trustees. I’m currently applying for the loan based on my income, credit score, etc and the trust’s assets.

What are some of the pitfalls I need to consider when financing within a trust?

Trust and property are in California.

Thanks in advance!