Super Jumbo Loan for Malibu Oceanview Manor
Finding super jumbo lenders that offer both a high loan amount and a high loan-to-value can be difficult. We helped our client get approved for nearly $6 million at 80% LTV despite wildfire risks.
Loan Amount:
$5,800,000.00
Loan Type:
Super Jumbo
- Location: Malibu, California
- Property Type: Single-Family Residence
- Transaction Type: Purchase
- Loan Amount: $5,800,000.00
- LTV: 80%
- Wow Factor: Super Jumbo Loan Amount and High LTV
The Challenge
Our client was under contract to purchase a newly constructed architectural masterpiece in Malibu, California for $7.25 million. He was a highly compensated executive employed by an asset management firm in Los Angeles. His income, assets and credit scores were strong.
Despite his strong financial profile, he needed our help to overcome two obstacles.
First, our client’s pain point was securing nearly $6 million at an LTV of 80%. However, super jumbo lenders offering $6M loan amounts typically cap the LTV at 50% to 60%.
Second, the subject property was located in an area that was suffering from wildfires. Due to this environmental risk, it was difficult to find a lender willing to take on that risk. Also, our client was having a hard time finding an insurance policy that didn’t have an astronomically high premium.
The Solution
After analyzing two years of his tax returns, we connected our client with a private bank offering super jumbo loan amounts at high LTVs.
The bank approved him for $5.8 million at 80% LTV.
His upward-trending tax returns, 800 credit score, and plentiful post-closing reserves were strong compensating factors that the lender considered to offset the risk associated with the high loan amount and the wildfire risks in the area.
Demonstrating its flexibility, the lender did not require the previous year’s tax returns (2024), understanding that the borrower lived in an area impacted by the Palisades fires and was entitled to an automatic tax return extension. Instead, the lender only required his 2022 and 2023 returns.
As a condition of getting the loan, the bank required our client to open an account and enter into a depository relationship with them.
The Result
After going through a streamlined underwriting process where only 1 appraisal was required, and after property insurance was successfully obtained, the bank cleared our client’s loan to close.
The lender was flexible and allowed him to close in a revocable trust to help with his estate planning goals.
His interest rate was competitive and he chose an adjustable-rate mortgage, amortized over 30 years, with the rate fixed for the first 10 years. To help with cash flow, he also chose interest-only payments.
Our client and his family look forward to enjoying their Malibu dream home.
If you’re navigating a high-value purchase with unique property considerations, learn more about super jumbo loans in California and how these transactions are successfully executed.
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DAK Mortgage is a licensed mortgage broker that can navigate you through the process of finding the right loan for your needs.