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FHA Loans in Malibu
Malibu's median home prices push well past $2 million in most neighborhoods. FHA loan limits in Los Angeles County max out at $1,149,825 for 2024.
Most Malibu properties sit above FHA's reach. The program was built for first-time buyers in affordable markets, not coastal California real estate.
If you're looking below $1.1 million in Malibu, you're hunting condos or teardowns. Even then, you'll compete against cash buyers and conventional loans.
FHA requires 3.5% down with a 580 credit score. You can qualify with 500-579 credit if you put down 10%.
Debt-to-income ratios can stretch to 50% with compensating factors. FHA accepts recent credit issues that would kill conventional approval.
You'll pay upfront mortgage insurance of 1.75% plus annual premiums of 0.55%-0.85% for the loan's life. No way to cancel PMI by paying down the balance.
Every major lender offers FHA, but pricing varies by 0.25%-0.5% between wholesale and retail channels. We shop 200+ lenders to find the tightest spread.
FHA appraisals kill more Malibu deals than credit issues. Beachfront properties with seawalls, homes on steep hillsides, and non-conforming structures all trigger appraisal red flags.
Condos need FHA approval at the project level. Most luxury Malibu buildings don't bother with certification since their buyers use conventional or cash.
I've closed maybe five FHA loans in Malibu over ten years. The program doesn't match the market's price point or property types.
When FHA does work here, it's typically a buyer stretching to 50% DTI on a mobile home or a fixer in the canyon. Neither scenario offers much protection if the market dips.
If you're FHA-dependent and set on Malibu, widen your search to Thousand Oaks or Camarillo. You'll get more house and better loan terms in markets built for this product.
Conventional loans with 5% down beat FHA in Malibu. You'll drop PMI once you hit 20% equity and avoid FHA's stricter property standards.
If you're a veteran, VA loans blow FHA out of the water. Zero down, no mortgage insurance, and a $1,149,825 limit that matches FHA without the ongoing costs.
For properties above conforming limits, you'll need jumbo financing. That means 10-20% down and stronger credit, but it's the only path to most Malibu inventory.
Malibu's coastal location triggers additional appraisal scrutiny. FHA won't finance properties in high-risk flood zones without proper insurance, adding $2,000-$5,000 annually to costs.
Fire insurance runs $8,000-$15,000 per year after recent wildfires. Lenders verify coverage before closing, and some carriers have stopped writing new policies in the area.
HOA dues in approved FHA condo projects often exceed $800 monthly. That payment counts toward your debt ratio, shrinking your buying power in an already expensive market.
$1,149,825 for single-family homes in Los Angeles County. Most Malibu properties sell well above this ceiling.
Only if the building has FHA project approval. Most luxury Malibu complexes skip certification since buyers rarely use FHA financing.
Technically yes, but flood zone requirements and coastal erosion concerns often trigger appraisal issues. Expect added scrutiny and insurance costs.
No. Conventional loans with 5% down cost less over time in Malibu's market. You'll drop PMI eventually and avoid FHA's strict property standards.
580 minimum for 3.5% down. But lenders prefer 620+ for better pricing, especially in high-cost California markets.
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.
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.