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Home Equity Loans (HELoans) in Lakewood
Lakewood's post-war housing stock has built substantial equity over decades. Homeowners who bought in the 1990s or earlier often sit on six figures in untapped value.
A home equity loan converts that equity into immediate cash without refinancing your first mortgage. You get a lump sum at a fixed rate and make two separate mortgage payments.
You need at least 15-20% equity remaining after the loan. Most lenders cap combined loan-to-value at 80-85%, meaning you can't borrow every dollar of equity.
Expect credit requirements around 620 minimum, though 680+ gets better rates. Debt-to-income ratio typically can't exceed 43% including both mortgage payments.
Banks offer home equity loans, but rates vary wildly. Credit unions sometimes beat banks by 50-100 basis points on identical borrower profiles.
We access 200+ wholesale lenders who compete for your loan. That competition drives rates down and gets second mortgages approved that a single bank would decline.
Lakewood borrowers often use equity loans for ADU construction. The fixed rate makes budgeting easier than a HELOC when you know total project cost upfront.
Watch closing costs closely. Some lenders charge 2-3% in fees that negate the benefit of accessing equity. We find no-cost or low-cost options that make financial sense.
A HELOC gives flexible access but variable rates. Home equity loans lock your rate and payment from day one, better for one-time expenses like college tuition or debt consolidation.
Cash-out refinancing might make sense if your first mortgage rate is above current market. But if you locked 3% during the pandemic, a home equity loan preserves that rate.
Los Angeles County transfer taxes don't apply to second mortgages. You avoid the $1.10 per thousand county charge that hits refinances and purchases.
Lakewood's stable neighborhoods and maintained housing stock make appraisals straightforward. Lenders view second liens here as lower risk than in areas with volatile values.
Most lenders allow up to 80-85% combined LTV. If your home is worth $700k with a $400k first mortgage, you could borrow roughly $160-195k depending on credit and income.
A home equity loan is a fixed-rate lump sum with set monthly payments. A HELOC is a revolving credit line with variable rates and flexible draws over 10 years.
Only if you use the funds to buy, build, or substantially improve the property securing the loan. Consult a tax advisor for your specific situation.
Typically 30-45 days from application to funding. You need a new appraisal, title work, and full underwriting just like your original mortgage.
The hard inquiry and new account may drop your score 5-10 points temporarily. Making on-time payments builds credit over time and diversifies your credit mix.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.