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Conventional Loans in Malibu
Malibu's median home price sits well above the 2024 conforming limit of $766,550. Most buyers here need jumbo financing, not conventional conforming loans.
Conventional loans still work for condos, smaller beach properties, and refinances where you already have equity. Coastal properties add layers to appraisal and insurance requirements.
Lenders scrutinize flood zones, wildfire risk, and property access more carefully in Malibu than inland markets. Your loan terms depend heavily on which canyon or beach area you're buying in.
You need 620 minimum credit for conventional approval, but Malibu properties typically require 680+ to get competitive rates. Lenders want 20% down to avoid PMI.
Debt-to-income can't exceed 43% for most conventional loans. With Malibu property taxes and high insurance premiums, your housing payment eats up DTI fast.
Two years of steady income history is standard. Self-employed borrowers need two years of tax returns showing consistent earnings, not declining revenue.
Not every lender handles Malibu properties comfortably. Some wholesale lenders decline coastal properties outright due to wildfire exposure.
The lenders who do approve here often add overlays: higher reserves required, lower max DTI, or premium pricing for high-risk zones. Shopping rates matters more than usual.
Appraisals take longer because the comp pool is smaller. Budget 2-3 weeks for appraisal completion versus 7-10 days in standard markets.
If your purchase price exceeds the conforming limit, don't force a conventional loan with a second mortgage. Just go jumbo from the start—cleaner approval, better rate.
I see buyers lose deals in Malibu because they underestimate insurance costs. Get your hazard and flood quotes before making an offer, not during escrow.
Properties with deferred maintenance or unique construction fail conventional appraisals here regularly. The appraiser calls out things that wouldn't matter in Riverside.
FHA loans don't make sense in Malibu—the upfront mortgage insurance premium costs too much relative to home values, and most properties exceed FHA limits anyway.
Jumbo loans dominate this market because prices run $2M-$20M+. You'll compare conventional against jumbo, not conventional against government programs.
For properties under the conforming limit, conventional beats VA loans on speed. VA appraisals add 10-14 days even when you qualify for zero down.
Wildfire risk reshapes conventional lending in Malibu. Some lenders won't touch properties in Very High Fire Hazard Severity Zones without 12 months reserves and premium insurance.
Septic systems and wells are common outside city limits. Conventional lenders require septic inspections and well water tests that add costs and timeline.
PCH properties get different treatment than canyon homes. Beach-adjacent means flood insurance, which conventional lenders require before closing if you're in a FEMA zone.
Minimum is 620, but you'll want 680+ for competitive rates. Malibu lenders price risk into your rate more aggressively than inland markets.
Not a conforming conventional loan—the 2024 limit is $766,550. You need a jumbo loan for amounts above that threshold.
Conventional loans allow 3% down, but 20% is standard in Malibu. Lower down payments add PMI and rarely get approved on higher-risk coastal properties.
Yes. Properties in high fire risk areas face stricter requirements: higher reserves, mandatory insurance, and some lenders decline them outright.
Budget 30-40 days minimum. Appraisals, insurance verification, and property inspections all run slower in coastal markets than standard suburban areas.
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.
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.