What Is a HELOAN?
A Home Equity Loan (HELOAN) is a fixed-rate, lump-sum loan secured by your home’s equity. Unlike a HELOC — which is a revolving line of credit — a HELOAN gives you a single disbursement with a set interest rate and predictable monthly payments for the life of the loan.
Think of it as a second mortgage with a fixed rate. You borrow once, know exactly what your payment will be every month, and your existing first mortgage stays completely untouched.
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HELOAN Up to $1 Million in California
Most lenders cap home equity loans at $750,000. At DiVita Home Finance, we work with lenders that go up to $1 million on select California HELOAN programs — giving high-value homeowners access to the equity they’ve built in the state’s premium real estate markets.
Whether you own in Marin County, the San Francisco Peninsula, Tiburon, Belvedere, Pacific Heights, Beverly Hills, or anywhere California property values command a premium — a $1 million HELOAN can fund major goals without forcing you to touch your first mortgage.
Why a HELOAN Is the Smart Move If You Have a Sub-3% Mortgage
If you locked in a mortgage rate of 2.5%–3% during 2020 or 2021, a cash-out refinance today would force you to give up that rate on your entire loan balance. At current rates above 6%, the math is painful.
A HELOAN solves this. You keep your low-rate first mortgage exactly as it is and take out a separate fixed-rate loan for the equity you need. Yes, the HELOAN rate will be higher than your first mortgage — but you’re only paying that rate on the new money, not on your entire balance.
Real-world California example:
| Cash-Out Refinance | HELOAN (DiVita) | |
|---|---|---|
| Existing mortgage balance | $400,000 @ 2.75% | $400,000 @ 2.75% (unchanged) |
| Cash needed | $150,000 | $150,000 |
| New loan total | $550,000 @ 6.5% | $150,000 @ 8.75% (HELOAN) |
| Monthly payment on total debt | ~$3,475 | ~$920 (1st) + ~$1,490 (HELOAN) = ~$2,410 |
| Annual savings | — | ~$12,780/year |
Even with a higher rate on the HELOAN, the total monthly cost is dramatically lower because you preserved your sub-3% first mortgage. See the full comparison →
HELOAN vs. HELOC — Which Is Right for You?
| Feature | HELOAN | HELOC |
|---|---|---|
| Rate type | Fixed | Variable |
| Disbursement | Lump sum at closing | Draw as needed |
| Payment predictability | Same payment every month | Payment varies with balance |
| Best for | One-time large expense | Ongoing or uncertain costs |
| Rate protection | Locked in at closing | Floats with Prime Rate |
Choose a HELOAN when you know exactly how much you need and want payment certainty. Choose a HELOC when you want revolving access and flexibility.
Common Uses for a California HELOAN
- Major home renovation — kitchen, bathrooms, ADU construction
- Debt consolidation — pay off high-interest credit cards and personal loans with a fixed low rate
- Investment property down payment — use equity in your primary home to fund a rental acquisition
- Business capital — fund business expansion or equipment without business financing
- Education — college tuition, professional certification
- Land purchase — buy residential land with a HELOAN from your existing home’s equity
- Estate settlement — buy out co-heirs or equalize an estate
Bank Statement HELOAN for Self-Employed Borrowers
Self-employed Californians often face challenges qualifying for home equity loans through traditional lenders who require W-2s and tax returns. Our bank statement HELOAN programs use 12–24 months of bank deposits to calculate qualifying income — no tax returns required.
This is a game-changer for business owners, consultants, real estate investors, and anyone whose reported taxable income doesn’t reflect their true cash flow. Learn more about bank statement programs →
California HELOAN Qualification Guidelines
- Loan amounts: Up to $1,000,000
- FICO score: 640 minimum (best terms at 720+)
- Rate type: Fixed for the full loan term
- Income: Full doc, bank statement, or self-employed
- Property: Primary residence, second home
- CLTV: Up to 95% with strong credit
Get a Free HELOAN Consultation
Talk to a licensed California mortgage advisor — no cost, no obligation.
Frequently Asked Questions — HELOAN California
What is the maximum HELOAN amount in California?
Through DiVita Home Finance’s lending partners, qualified California borrowers can access home equity loans up to $1 million. Most traditional lenders cap at $750,000, making our programs a significant advantage for owners of high-value California properties.
Is a HELOAN or a cash-out refinance better if I have a low-rate mortgage?
A HELOAN is almost always better for homeowners with a sub-3% first mortgage. A cash-out refinance replaces your entire loan at today’s higher rates. A HELOAN leaves your first mortgage intact and only applies the new rate to the additional funds you borrow — saving thousands per year in most scenarios.
Can self-employed borrowers get a HELOAN?
Yes. We offer bank statement home equity loan programs that use 12–24 months of bank deposits to qualify income. This is particularly valuable for California business owners whose tax returns understate their actual cash flow.
What is the difference between a HELOAN and a HELOC?
A HELOAN provides a one-time lump sum at a fixed interest rate with consistent monthly payments. A HELOC is a revolving line of credit with a variable rate — you draw what you need over a 10-year period and only pay interest on the drawn balance. HELOANs are better for one-time large expenses where payment certainty matters; HELOCs are better for ongoing or uncertain costs.
Related Resources
- HELOC California — Up to 95% CLTV
- HELOC vs. Cash-Out Refinance — Protect Your Sub-3% Rate
- Bank Statement HELOC for Self-Employed Borrowers
- Cash-Out Refinance California
- Land Loans California
About DiVita Home Finance
DiVita Home Finance is a small, family-owned mortgage company based in Marin County, California. When you call, you speak directly with Michael DiVita — the owner — not a call center, not an out-of-state rep, not someone reading from a script. We’re here for a low-key, no-obligation conversation about your situation.
We take your privacy seriously. We will never sell your information to third-party lenders or lead generation companies — unlike many of the large mortgage platforms. Your inquiry stays with us, period.
📞 Call: (800) 239-1103 | 💬 Text Michael directly: (310) 849-9124
