I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. Call (800) 239-1103.
Most home equity lenders in California cap their loan amounts at $750,000. For homeowners in Marin, San Francisco, the Peninsula, Tiburon, Belvedere, Pacific Heights, Beverly Hills, and other premium California markets — that ceiling is often not enough. I work with lending partners who offer fixed-rate Home Equity Loans (HELOANs) up to $1 million in California. Here’s what you need to know. See also: HELOAN California — full program overview and HELOC California — up to 95% CLTV.
What Is a HELOAN?
A HELOAN (Home Equity Loan) is a second mortgage that provides a lump sum of cash at a fixed interest rate. Unlike a HELOC — which is a revolving line with a variable rate — a HELOAN gives you a single disbursement at closing, a fixed interest rate locked in for the life of the loan, predictable identical monthly payments, and no risk of rate increases. Your existing first mortgage stays completely untouched. The HELOAN is a separate loan in second position.
Why $1 Million Matters for California Homeowners
California’s median home price exceeds $800,000. In premium markets, homes routinely sell for $1.5 million, $2 million, or more. Homeowners in these markets have often built equity positions that exceed what standard $750,000 HELOAN limits can serve. Consider a homeowner in Ross, Tiburon, or Piedmont with a $2 million home and a $600,000 first mortgage — they have $1.4 million in equity. A $750,000 HELOAN cap means they can only access about 54% of their equity position. With a $1 million HELOAN, they access 71% — unlocking an additional $250,000 in capital.
What Can California Homeowners Do With a $1 Million HELOAN?
Investment property acquisition: down payment on a $3–4M rental property in the Bay Area. Major renovation or ADU: full gut renovation plus a detached ADU can easily reach $500,000–$900,000 in high-cost California markets. Business investment: capital for a business expansion, equipment, or acquisition. Estate planning: buy out co-heirs on inherited property. Bridge to retirement: supplement income or fund a major life transition. Portfolio diversification: move equity from real estate into other investments.
HELOAN Up to $1M vs. Cash-Out Refinance — For Sub-3% Mortgage Holders
If you locked in a 2.5%–3% mortgage in 2020 or 2021, a cash-out refinance today is a costly mistake. Refinancing your entire balance at 6.5%+ to access additional funds could cost you $15,000–$25,000 extra per year in interest. A HELOAN lets you access up to $1 million in equity without touching your first mortgage rate. You pay the higher HELOAN rate only on the new funds — your sub-3% first mortgage continues at its locked-in rate for the remaining loan term. See the full rate comparison with real California numbers →
HELOAN vs. HELOC at High Loan Amounts
| Consideration | HELOAN ($1M) | HELOC ($750K max) |
|---|---|---|
| Max amount | $1,000,000 | $750,000 |
| Rate type | Fixed — locked at closing | Variable — moves with Prime |
| Payment | Predictable monthly P&I | Interest-only during draw; variable |
| Best when | You need a large lump sum and payment certainty | You need flexible ongoing access |
Bank Statement HELOAN — Self-Employed Borrowers Welcome
My $1 million HELOAN programs accept bank statement income documentation, making them accessible to California business owners, consultants, real estate investors, and other self-employed borrowers who show limited taxable income but have strong cash flow and substantial equity. Learn more about bank statement programs →
How to Qualify
California property with sufficient appraised value. Strong credit (720+ FICO recommended for $1M programs). Documentable income — W-2, tax returns, or bank statements. Combined LTV within program guidelines.
- HELOAN California — Full Program Overview
- HELOC California — Up to 95% CLTV
- HELOC vs. Cash-Out Refinance — Protect Your Low Rate
- Bank Statement HELOC/HELOAN for Self-Employed
- Jumbo Mortgage Loans California
Frequently Asked Questions
What is the maximum HELOAN amount available in California?
Through my lending partners, I can arrange fixed-rate Home Equity Loans (HELOANs) up to $1 million in California. Most banks and credit unions cap HELOANs at $750,000 — which is insufficient for many Marin County, San Francisco, Peninsula, and Los Angeles premium market homeowners who have equity positions well above that threshold. The $1 million HELOAN requires 720+ FICO, sufficient combined LTV within program guidelines, and documentable income (W-2, tax returns, or bank statements for self-employed borrowers). Call me to run exact numbers for your home value and first mortgage balance.
Should I use a HELOAN or a HELOC to access my California home equity?
The choice depends on two things: how much you need and how you want to receive it. If you need more than $750,000 — the HELOC ceiling — a HELOAN is the only second-lien option. If you need up to $750,000, the decision is about rate certainty vs. flexibility. A HELOAN gives you a fixed rate locked at closing — your monthly payment never changes. A HELOC gives you a revolving line at a variable rate (Prime plus margin) — it’s more flexible but your payment can rise. For homeowners who need a large lump sum for a specific purpose (ADU construction, investment property down payment, estate planning), a HELOAN’s payment predictability is often preferable. For ongoing or phased projects, a HELOC’s revolving access works better.
Why not just do a cash-out refinance instead of a $1M HELOAN?
For the majority of California homeowners who bought or refinanced in 2020–2022, a cash-out refinance at today’s rates would be financially catastrophic. Replacing a $600,000 mortgage at 2.75% with a $1.6M mortgage at 6.75% to access $1M in equity would increase your annual interest cost by $25,000–$35,000 per year — every year, for the remaining life of the loan. A $1M HELOAN adds that $1M at the higher rate, but your sub-3% first mortgage continues unchanged. Total interest cost over 10 years: the HELOAN approach saves $200,000–$300,000 vs. the cash-out refinance for a typical sub-3% mortgage holder. The only scenario where a cash-out refi makes more sense is when your existing first mortgage rate is already close to current market rates (above 6%).
Talk to Michael Directly
DiVita Home Finance | Tiburon, CA | In lending since 2000, founded DiVita Home Finance in 2007. Michael DiVita DRE #01372066 | NMLS #241655. Company DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
