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Home Equity Loans
Available Home Equity Loans / Second Mortgage Loans
We offer the following 2nd mortgages on California residential SFR properties:
Traditional 2nd Loans / Lines of Credit
- Loans and lines of credit to 75% combined lien amount of the value of your home
- Interest rates starting at Prime + 0.00%
- Maximum $350,000 second mortgage (minimum $50,000 loan amount)
- Minimum 650+ qualifying credit score!
- Full income documentation required (no "stated" income loans)
- Equity Line of Credit 1st lien mortgages OK
- Primary residence or second / vacation home only (No investment property 2nds)
Hard Money 2nd Loans / Lines of Credit
- 2nd mortgage loans and lines of credit from 55% to 65% combined lien amount of the value of your home (LTV is case-by-case)
- Interest rates range from 11.50% to 14.99%
- Points and fees typical for hard money loans
- Maximum $1,000,000 ($1 million) second mortgages (minimum $50,000 loan amount)
- Minimum 580+ qualifying credit score
- Reasonable proof of repayment ability required. Limited income documentation.
- Equity line 1st lien mortgages OK
- Primary, second / vacation / investment, and 2 - 4 unit residential property ok
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Types of loans using your home's equity
There are two types of home equity lending:
These loans will generally have a lower interest rate than credit cards or installment loans. A Home Equity LOAN ("HELOAN") is a fixed rate, amortizing loan over a protracted term (usually 15 - 30 years).
In contrast, a Home Equity Line of Credit ("HELOC") is a variable-rate line of credit based on the Wall Street Prime Rate Index and payments are "interest-only" for the term of the loan -- usually 10 to 15 years. Our Home Equity Lines feature a conversion option that allows you to convert all or part of the funds borrowed to a fixed rate, amortizing loan term at any time. With a home equity line of credit you pay only on the amount you borrow, and you may repay the line and re-borrow over and over during the draw period term. |
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Traditional Home Equity Lines of Credit feature:
- Interest-only payments (based on Prime Rate1 + a fixed margin)
- Borrow up to 75% of property value-pay on only the amount you borrow 2
- No minimum ownership period required to apply, first-time home buyers OK
- Available for primary residence, second home and vacation property2
- Can be used as a 2nd mortgage when purchasing a home
- Can be used to refinance a high-interest 2nd mortgage
- Lines of Credit from $50,000 up to $350,000
- Can be drawn against more than once
- 10, 15, or 20-year terms available
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Traditional Home Equity Loans feature:
- Fixed rate monthly payments — 20-year to 30-year terms
- Borrow up to 75% of property value2
- Available for primary residence, second home and vacation property2
- Can be used to refinance a higher-interest 2nd mortgage
- Home Equity Loans from $50,000 up to $350,000
- No annual fees
Hard Money Home Equity Loans / Lines feature:
- Easier qualifying than traditional bank loans, provided there is ample equity in the property
- Much higher interest rates, points and fees than traditional loans in exchange for less rigid requirements (read this first if you've never had a hard money loan)
- Can be used on both primary and investment property
- Available to $1 million dollars on prime properties in coastal and major metro areas of CA
- Loans secured by primary, owner-occupied 1 - 4 unit SFRs are subject to certain Federal and State lending restrictions for covered loans -- call for info.
Need a home equity loan -- or home equity line of credit? Call me today to confidentially discuss your unique situation, or fill out my Online Loan Inquiry form now. Either way, I'll provide you with the information you need to start putting your home equity to good use!
Get your personalized Mortgage Analysis Report — see & compare the benefits in writing
- Prime Rate is a variable rate and subject to periodic adjustment
- Maximum loan amounts may vary depending on property use and/or credit and lender underwriting guidelines
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