If I am understanding your question correctly, you and your parents want to buy an income producing rental property and the income will fund a special needs trust. A special needs trust is a form of a supplemental needs trust to provide financial support for an individual who is disabled and receiving needs based government assistance so that the assets will be there to "supplement" the needs of the individual without causing them to lose their benefits. A parent or other individual needs to fund the trust, and manage the trust as a trustee, for the benefit fo the disabled individual. More facts are needed to understand what your objective is in establishing a special needs trust. If you are only looking for asset sheltering, there bay be other options that are more appropriate. As far as obtaining a loan funded to a trust, most lenders do not like to do this. They want an individual as a personal guarantor of the loan. Some lenders will fund to the trustee of a trust... it just varies.