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Malibu Mortgage FAQ
Buying in Malibu means navigating jumbo loans, coastal property restrictions, and a luxury market with unique financing rules. Most purchases here exceed conforming limits, so understanding non-QM options matters.
We've answered the mortgage questions Malibu buyers actually ask. These cover loan programs that work for high-net-worth borrowers, self-employed professionals, and investors buying coastal real estate.
SRK CAPITAL brokers shop 200+ lenders to find programs that fit Malibu's price points. We work with borrowers who need flexibility beyond what retail banks offer.
Anything over $766,550 for a single-family home in 2024. Nearly every Malibu purchase falls into jumbo territory given local pricing.
Yes, but FHA caps at $766,550 in Los Angeles County. That severely limits your inventory in Malibu's market.
Most jumbo lenders want 700 minimum. Rates improve significantly at 740 and above for high-balance loans.
Expect 20% minimum for most jumbo products. Some portfolio lenders go to 15%, but rates increase and options narrow.
Yes, and we use them frequently for self-employed buyers. You'll need 12-24 months of business bank statements instead of tax returns.
Debt Service Coverage Ratio loans qualify based on rental income, not personal income. Investors buying Malibu vacation rentals use these often.
Yes, through Foreign National loan programs. Expect 30-40% down and higher rates than domestic borrowers pay.
Two years tax returns, W-2s, 60 days of bank statements, and employment verification. Underwriters scrutinize large deposits closely on jumbo loans.
Standard loans close in 30 days. Jumbo and non-QM products sometimes need 45 days due to additional underwriting layers.
Pre-qualification is an estimate. Pre-approval means a lender reviewed your actual financials and issued a conditional commitment.
ARMs make sense if you're selling within 7 years or expect income growth. Fixed rates provide payment certainty in a volatile market.
Expect 2-3% of purchase price. On a $3M property, that's $60K-$90K including title, escrow, appraisal, and lender fees.
Not if you put down 20%. Some lenders offer lender-paid PMI at higher rates, but that rarely pencils out on jumbo amounts.
Yes, from immediate family. You'll need a gift letter stating the funds don't require repayment.
You pay only interest for 5-10 years, then principal kicks in. High earners use these for cash flow flexibility and tax planning.
Lenders divide your liquid assets by 360 months to create qualifying income. Retirees with investment portfolios use these frequently.
Short-term financing when you need to buy before selling your current home. Rates run higher but provide timing flexibility.
Some portfolio lenders allow it, but expect rate premiums. Most investment properties require 20-25% down minimum.
An adjustable-rate mortgage held by the lender rather than sold to Fannie or Freddie. These offer more flexible underwriting on unique properties.
Yes. Lenders average two years of 1099 income and scrutinize business expenses more closely than W-2 earnings.
Two years of personal and business tax returns plus a current P&L. Lenders want consistent income trends across both years.
Most jumbo lenders cap DTI at 43%. High earners with excellent credit sometimes push to 50% on portfolio products.
Yes, through ITIN loan programs. You'll need 15-20% down and verification of U.S. work history or business operations.
Underwriting based on current business P&L instead of tax returns. Self-employed borrowers who write off significant expenses use these.
No. Malibu doesn't qualify as a rural area under USDA guidelines, so these zero-down loans aren't an option here.
Yes, but the $766,550 limit excludes most inventory. Veterans buying here typically need jumbo VA loans with down payments on amounts above that cap.
Special financing for specific professions or communities, often with reduced rates or fees. Availability varies by lender partnerships.
Yes, through Construction Loans that convert to permanent financing. Expect 20-25% down and detailed builder documentation requirements.
A Home Equity Line of Credit lets you borrow against existing equity. Rates adjust monthly and you only pay interest on what you draw.
Only if you're keeping the loan long enough to recover the cost. On a jumbo loan, break-even often takes 4-6 years.
Homeowners 62+ can convert equity to income without monthly payments. The loan gets repaid when you sell or pass away.
Appraisers look at recent coastal sales within a mile. Unique properties sometimes require two appraisals to satisfy jumbo lenders.
Some lenders offer float-down locks up to 90 days. You'll pay a fee, but it protects against rising rates while you shop.
Conforming loans meet Fannie Mae limits and guidelines. Jumbo loans exceed those limits and typically require stronger credit and larger down payments.
We shop your scenario across 200+ wholesale lenders simultaneously. Banks only offer their own products, so you never see competitive options.
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.
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.