Question 1

What is an equity appreciation loan exactly?

Accepted Answer

It's a loan product that uses projected home value growth to shape your financing terms. Lenders bet on future equity — not just what you have today.

Question 2

Does my home need to appraise high to qualify?

Accepted Answer

A strong appraisal helps, but lenders also look at local market trends. Sonoma County's appreciation history works in your favor.

Question 3

How is this different from a HELOC?

Accepted Answer

A HELOC draws only on current equity. Appreciation loans factor in projected growth, which can mean better terms or higher access to funds.

Question 4

Can I use this loan to buy or just refinance?

Accepted Answer

Most programs are structured for existing homeowners tapping built-up equity. Use cases vary — ask us what fits your specific situation.

Question 5

Is this a non-QM loan?

Accepted Answer

No. Equity appreciation loans are not classified as non-QM. They still follow standard underwriting, but program structures differ by lender.

Question 6

How do I know if Cotati is the right market for this product?

Accepted Answer

Sonoma County's consistent appreciation trends make Cotati a reasonable fit. A broker review of your equity position will confirm if the numbers work.

Equity Appreciation Loans in Cotati, CA