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in Malibu, CA
Malibu's luxury market creates unique challenges for both conventional and VA borrowers. Most properties here exceed conforming loan limits, pushing buyers into jumbo territory.
VA loans cap at $1,149,825 in Los Angeles County for zero down. Above that, you need 25% down on the excess. Conventional jumbos typically require 20% down regardless of loan amount.
Conventional loans offer the most flexibility in Malibu's high-end market. You can finance investment properties, second homes, and amounts well above conforming limits with a single lender.
Expect 20% down for jumbo loans over $1,149,825. Credit requirements tighten above $2M—most lenders want 720+ scores and significant reserves. Rates vary by borrower profile and market conditions.
VA loans shine for primary residence purchases under $1.15M. You can buy with zero down if your entitlement is intact. No monthly mortgage insurance saves $200-400 monthly compared to conventional.
Above the conforming limit, VA requires 25% down on the excess amount. A $2M home means 25% of $850,175—about $212,500 down. That's still less than the $400,000 conventional would require.
The funding fee is where VA loans cost you upfront. Veterans with no disability rating pay 2.15% on zero-down purchases. On a $1M loan, that's $21,500 rolled into your balance.
Conventional loans require PMI unless you put 20% down. On a $900,000 loan with 10% down, expect $375-450 monthly in PMI. That's $4,500-5,400 annually until you reach 20% equity.
Property restrictions differ significantly. VA requires the home meet minimum property requirements—no major defects, functional systems, safe access. Many Malibu cliff properties or fixer opportunities won't qualify.
Choose VA if you're buying a move-in ready primary residence under $1.5M. The zero down option and lack of monthly MI outweigh the funding fee in most scenarios. We see veterans save $150,000+ in upfront costs this way.
Go conventional if you're buying above $2M, need a second home, or want a beachfront property needing work. Most Malibu transactions fall into this category. The flexibility matters more than the down payment savings.
Veterans buying luxury properties often use both. Put your VA entitlement toward a condo under the conforming limit, then finance the $4M beach house with conventional. We structure these deals regularly.
Yes, but you'll need 25% down on the amount exceeding $1,149,825. On a $2M home, that's roughly $212,500 down plus closing costs.
Not typically. The VA appraisal adds 3-5 days, but we close most VA deals in 21-25 days—same timeline as conventional loans.
VA requires all defects be fixed before closing. Conventional loans allow you to close with repair credits or as-is if you have enough equity.
You can waive your buyer inspection, but VA still requires an appraisal inspection. Properties must meet minimum property requirements regardless.
Rates vary by borrower profile and market conditions. VA typically runs 0.25-0.50% lower, but fewer lenders offer VA jumbos above conforming limits.