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Home Equity Loans (HELoans) in Malibu
Malibu properties carry substantial equity—these aren't starter homes. A home equity loan converts that built-up value into accessible cash without selling.
Most Malibu borrowers use HELoans for major renovations, debt consolidation, or buying investment property. The fixed rate matters when you're borrowing six figures against beachfront equity.
You need 15-20% equity remaining after the loan closes. For a $3M Malibu home, that means keeping $450K-$600K untouched as a cushion.
Credit requirements start at 620, but rates improve dramatically above 700. Lenders cap debt-to-income at 43% including your first mortgage and new HELoan payment.
Not every lender works Malibu. The fire risk and high loan amounts eliminate many portfolio lenders who'd otherwise offer competitive rates.
Credit unions often cap HELoans at $250K—useless for most coastal properties. We connect to wholesale lenders who underwrite $500K+ home equity loans on Malibu homes regularly.
Malibu appraisals take longer than standard LA County properties. Budget three weeks minimum—comps are sparse and appraisers need to justify high values to lenders.
Skip the HELoan if you're planning a cash-out refinance within two years. Closing costs on both transactions will eat your equity faster than the loan saves you.
HELOCs offer flexibility but variable rates. If you're funding a $400K remodel, the HELoan's fixed payment beats watching your HELOC rate adjust every month.
Reverse mortgages work for seniors but carry high fees. Cash-out refis make sense only if your first mortgage rate sits above current market rates.
Wildfire insurance complicates Malibu HELoans. Lenders require proof of FAIR Plan coverage or private insurance—sometimes both—before funding.
Coastal Commission restrictions affect renovation projects. If your HELoan funds construction, verify permits first. Lenders won't close if work requires approvals you don't have.
Most lenders cap combined loan-to-value at 80-85%, meaning your first mortgage plus HELoan can't exceed 85% of your home's value. Rates vary by borrower profile and market conditions.
No. HELoans don't trigger Prop 13 reassessment because you're not transferring ownership. Your tax basis stays the same.
You'll need FAIR Plan coverage at minimum. Some lenders require supplemental private insurance on top of FAIR Plan for Malibu properties.
Yes. Many Malibu homeowners use equity loans as down payments on investment properties. The fixed payment structure works well for this strategy.
Expect 30-45 days from application to funding. Appraisals take longer in Malibu due to limited comps and property uniqueness.
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.