Question 1

How much equity do I need to qualify for a HELoan in Monterey?

Accepted Answer

Most lenders require 15-20% equity to remain after the loan closes. If your home is worth $800,000, expect to leave $120,000-$160,000 untouched.

Question 2

What's the difference between a HELoan and a HELOC?

Accepted Answer

A HELoan provides a lump sum at a fixed rate. A HELOC works like a credit card with a variable rate. Choose based on whether you need all funds now or over time.

Question 3

Can I use a HELoan to build an ADU in Monterey?

Accepted Answer

Yes, ADU construction is a common use. Lenders prefer to see approved permits and contractor estimates before funding. Plan for a full appraisal of the completed project.

Question 4

How long does a HELoan take to close in Monterey?

Accepted Answer

Expect 45-60 days from application to funding. Coastal appraisals add time, and lenders require full title searches. Some programs close faster if you have recent property valuations.

Question 5

Will a HELoan affect my property taxes in California?

Accepted Answer

No. California's Prop 13 prevents reassessment on loans. Only ownership changes or new construction trigger tax increases. Your assessed value stays unchanged.

Home Equity Loans in Monterey: Fixed-Rate Cash Against Your Coastal Property