Question 1

What makes equity appreciation loans different from HELOCs?

Accepted Answer

HELOCs lend against current equity only. Equity appreciation loans factor in projected future value — giving you access to more financing in high-growth markets like Los Altos.

Question 2

Do I need to own my Los Altos home free and clear?

Accepted Answer

No. You need meaningful existing equity, but an existing mortgage doesn't disqualify you. Lender requirements vary.

Question 3

Are these loans available for investment properties in Santa Clara County?

Accepted Answer

Some lenders allow it, but terms tighten on non-owner-occupied properties. Your property type directly affects what programs are available.

Question 4

How is the projected appreciation value determined?

Accepted Answer

Lenders use local market data, historical appreciation trends, and third-party valuation models. Los Altos's track record works in your favor here.

Question 5

Is this a non-QM loan product?

Accepted Answer

Not necessarily. Some equity appreciation products meet qualified mortgage standards. Others don't — it depends on the specific lender and program structure.

Question 6

How do rates on these loans compare to conventional loans?

Accepted Answer

Rates vary by borrower profile and market conditions. Specialty products often carry a premium over conventional rates — your equity position can offset some of that.

Equity Appreciation Loans in Los Altos, CA