Question 1

How much equity can I borrow against in Half Moon Bay?

Accepted Answer

Most lenders cap combined loans at 80-85% of home value. A $1.5M home with $900K mortgage gives you $300K to $375K access depending on credit and income.

Question 2

Do home equity loans require flood insurance here?

Accepted Answer

Yes if your property sits in a FEMA flood zone. Expect $1,200-$2,500 annual premiums that lenders escrow monthly alongside your loan payment.

Question 3

Can I deduct home equity loan interest on my taxes?

Accepted Answer

Only if you use funds to substantially improve the property securing the loan. Kitchen remodels qualify. Debt consolidation or vacation spending doesn't under current tax code.

Question 4

How long does underwriting take for coastal properties?

Accepted Answer

Plan 35-45 days from application to funding. Appraisals alone need 3-4 weeks due to comp research along the coast. Rush orders rarely help in this market.

Question 5

What happens to my home equity loan if I sell?

Accepted Answer

You pay it off at closing from sale proceeds. The second lien gets satisfied after your first mortgage but before you receive net proceeds.

Home Equity Loans in Half Moon Bay: Tap Your Coastal Property Value