Loading
Construction Loans in Malibu
Malibu's restrictive zoning and coastal commission requirements make construction financing different from anywhere else. Most lenders won't touch projects here without deep experience in California Coastal Zone compliance.
Custom builds in Malibu typically run $800-$1,500 per square foot before land costs. Your construction loan needs to cover extended timelines caused by permitting delays and specialized coastal construction requirements.
Construction lenders want 680+ credit and 20-25% down on the total project cost including land. If you already own the lot, that equity counts toward your down payment requirement.
You need detailed plans stamped by a licensed architect and a fixed-price contract from a builder with coastal construction experience. Budget contingencies of 15-20% matter here because change orders are guaranteed in Malibu builds.
Only a handful of our 200+ lenders will finance Malibu construction, and they price for the risk. Expect rates 1-2% above conventional mortgages plus 1-2 points in origination fees.
Regional banks with California coastal experience offer better terms than national construction lenders. They understand why a 24-month build timeline in Malibu isn't a red flag — it's normal.
Three deals kill themselves before they start: underestimating soft costs, using contractors without coastal permits history, and assuming 12-month completion timelines. Plan for 18-24 months minimum.
The conversion to permanent financing matters as much as the construction loan itself. Lock in your end-loan terms upfront through a construction-to-permanent product rather than hoping rates stay favorable.
Bridge loans work for major renovations if you're keeping the foundation and 50%+ of existing walls. Full teardown rebuilds require construction financing regardless of existing structure value.
Jumbo construction loans handle projects over conforming limits, which is most Malibu builds. Hard money only makes sense for land acquisition while you secure construction financing — rates are too high for 18-month construction periods.
Lenders scrutinize fire insurance availability before funding any Malibu construction loan. Post-Woolsey Fire, expect higher premiums and possible FAIR Plan requirements that affect your debt-to-income ratio.
Septic system approvals and water availability documentation delay more Malibu projects than any other factor. Your lender requires proof of these before releasing first-draw funds, not at project completion.
Typically 75-80% of completed appraised value. If you own the land free and clear, that equity reduces how much cash you need at closing.
Yes, you pay interest monthly only on funds actually drawn. Full principal and interest payments start when the loan converts to permanent financing.
Most lenders allow 12-18 month extensions for legitimate delays like permit issues. Extension fees typically run 0.25-0.50% of the loan amount.
Few construction lenders allow owner-builders in Malibu. The coastal compliance complexity requires licensed contractors with proven track records.
Lenders require third-party inspections before releasing funds for each construction phase. Budget $500-$800 per inspection and 5-10 business days processing time.
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.
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.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
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.