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Home Equity Loans (HELoans) in Paramount
Paramount homeowners who bought before 2020 are sitting on equity they can tap. A home equity loan gives you a lump sum at a fixed rate—predictable payments, no surprises.
Most borrowers use these for debt consolidation or big projects with known costs. The fixed rate makes budgeting easier than a HELOC that can adjust monthly.
You need at least 15-20% equity after the loan closes. Most lenders cap you at 80-85% combined loan-to-value, meaning your first mortgage plus the equity loan can't exceed that threshold.
Credit requirements start around 620, but 680+ gets better rates. Income needs to support both mortgages, and your debt-to-income ratio usually can't exceed 43%.
Big banks offer home equity loans but often price them high and move slow. Credit unions in Los Angeles County tend to be more competitive on rates if you qualify for membership.
We shop across portfolio lenders and credit union networks that specialize in second mortgages. Rate spreads between lenders can hit 1-2%, which changes your monthly payment significantly.
Most Paramount borrowers pick home equity loans for debt consolidation—trading 18% credit card rates for 8-9% mortgage rates. The math works if you don't run those cards back up.
If your project cost is uncertain or you might need funds over time, a HELOC makes more sense. Home equity loans work when you know exactly what you need and want payment certainty.
HELOCs give you a credit line you tap as needed with variable rates. Home equity loans hand you cash upfront with a fixed rate. Same equity source, different structures.
Cash-out refinances replace your first mortgage entirely. That makes sense if your current rate is above market, but not if you locked in at 3% a few years back.
Paramount property values vary block by block, which affects your available equity. Lenders appraise conservatively in mixed-value areas, so expect the number to come in lower than Zillow.
Some Paramount homes need foundation or roof work before you can tap equity. Lenders won't fund second mortgages on properties with deferred maintenance showing in the appraisal.
Most lenders allow 80-85% combined LTV, minus your current mortgage balance. If your home appraises at $500k with a $300k first mortgage, expect $100k-$125k available.
Home equity loans give you a lump sum with a fixed rate and term. HELOCs work like a credit card—you draw what you need when you need it, usually at a variable rate.
Yes, but rates will be higher and equity requirements stricter. Scores above 680 unlock better pricing and more lender options across our network.
Expect 3-5 weeks from application to funding. Appraisal turnaround drives the timeline—Los Angeles County appraisers stay busy year-round.
Interest may be deductible if you use the funds for home improvements. Consult a tax advisor—we're brokers, not CPAs, and rules changed after 2017 tax reform.
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.