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Home Equity Loans (HELoans) in Santa Monica
Santa Monica homeowners sit on serious equity. Properties here routinely carry valuations above $2 million.
That built-up equity makes HELoans powerful. You can borrow a lump sum at fixed rates without refinancing your primary mortgage.
Most borrowers here tap equity for ADU construction, seismic retrofits, or consolidating high-rate debt. Fixed monthly payments beat variable HELOC rates.
Lenders allow up to 90% combined loan-to-value (CLTV). That's your first mortgage plus the new HELoan divided by home value.
You need 640+ credit for most programs. Income verification is standard—W-2s, tax returns, or bank statements for self-employed.
Expect appraisal requirements. Santa Monica's coastal location and architectural variety mean desktop valuations rarely work here.
Not all lenders price HELoans the same in high-value markets. Regional banks often cap loans at $500K regardless of equity available.
Portfolio lenders and national wholesale channels handle larger amounts better. We access 200+ lenders who compete on high-balance seconds.
Rate spreads between lenders hit 1.5% on identical scenarios. Shopping matters more here than in conforming first mortgages.
Santa Monica clients choose HELoans over cash-out refinances when their first mortgage sits below 4%. Refinancing destroys that rate advantage.
Watch closing costs. Lenders charge 2-5% in fees—appraisal, title, origination. On a $300K HELoan, that's $6K-$15K upfront.
ADU financing drives half our HELoan volume here. Borrowers add rental units and keep their existing mortgage terms locked.
HELOCs offer flexibility with variable rates and draw periods. HELoans give certainty—one lump sum, fixed rate, predictable payoff.
Cash-out refinances reset your entire mortgage. That makes sense only if current rates beat your existing first mortgage rate.
Reverse mortgages suit retirees who want no monthly payment. HELoans require standard debt service but don't accrue deferred interest.
Santa Monica's rent control and ADU boom create unique equity strategies. Borrowers build backyard units that pay for themselves through rental income.
Coastal properties face stricter appraisal reviews. Proximity to ocean, view premiums, and beach access all factor into valuation caps.
Seismic retrofit requirements hit older homes here. HELoans fund foundation bolting and soft-story fixes that insurance companies demand.
Most lenders allow up to 90% CLTV. On a $2M home with a $1M first mortgage, you could access up to $800K in equity.
Yes. Santa Monica properties require full appraisals due to coastal location and high values. Desktop valuations don't work here.
Rates vary by borrower profile and market conditions. Second mortgages typically price 1-3% above first mortgage rates.
Absolutely. ADU construction is the top use case we see. Fixed funds and predictable payments match project timelines.
HELoans provide a lump sum at a fixed rate. HELOCs offer draw periods with variable rates and flexible access.
No. Your first mortgage terms stay intact. That's why borrowers with low rates choose HELoans over cash-out refinances.
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.