What Property Types Are Eligible for the Wealth Builder HELOC?

The Wealth Builder HELOC is available on a range of residential property types in California. However, not all property types qualify, and certain property conditions can affect eligibility. Here is what you need to know.

Eligible Property Types

• Single family residences (detached)
• Attached single family residences (townhomes)
• Condominiums (warrantable and select non-warrantable)
• Planned Unit Developments (PUDs)
• 2–4 unit residential properties

Occupancy Types

• Primary residence
• Second home
• Investment property

Ineligible Property Types

• Commercial property
• Raw land or lots
• Manufactured homes (not on permanent foundation)
• Co-ops
• Properties with significant deferred maintenance
• Properties with active litigation (HOA or title)

Appraisal and Condition Requirements

All properties must meet the program’s appraisal standards. Properties with condition ratings that reflect significant deferred maintenance, safety hazards, or major systems in disrepair may not be eligible. For loans above $2,000,000, two independent appraisals are required. The lender also reviews Collateral Underwriter (CU) and LCA risk scores from the appraisal submission.

Property-specific documents to gather

• Condos: HOA contact information, the current budget, and any recent special assessments. Active litigation involving the HOA is a listed problem, so ask the management company about it early.
• PUDs: HOA dues and a note on any amenities the association maintains.
• 2–4 units: a list of units with current leases and rents, and a note on which unit you occupy, if any.
• Townhomes: a copy of any shared-wall or maintenance agreements.

A pre-appraisal walk-through

The appraisal rates condition, and the page notes that deferred maintenance or safety hazards can prevent approval. Before the appraiser arrives, walk the property with this list:

• Roof leaks, ceiling stains, and gutters
• Working smoke and carbon monoxide detectors, and handrails on stairs
• Exposed wiring, missing outlet covers, and non-functioning heating or water heaters
• Peeling paint or damaged windows and doors
• Safe, unobstructed access to the attic, garage, and all units

When a property is unusual

Properties with unique features, partially finished additions, or unpermitted work can draw extra review. Tell us about those items upfront, so we can discuss options before the appraisal is ordered. Raw land, commercial property, co-ops, and manufactured homes not on a permanent foundation are not eligible.

Timing the paperwork

HOA documents can take days to arrive, and management companies sometimes charge for them. Request them as soon as you decide to apply instead of waiting for a condition. For multi-unit properties, update the rent roll so it matches the leases, and write down any unit that is vacant, with the date it became vacant. Tidy documentation helps the appraiser and underwriter reach conclusions faster.

Frequently asked questions

Does the appraiser check whether my ADU is legal?

Appraisers note how an additional dwelling is built and whether it appears permitted. Bring any permit records you have; they help the appraiser and the underwriter.

Are non-warrantable condos possible?

The program lists select non-warrantable condos as eligible. The specific building decides, so send us the project name early.

Can I rent out part of a 2-4 unit and still use the line?

Occupancy type matters to the program, so tell us how many units you will occupy and how many you will rent. That determines the occupancy category and its limits.

Related guides

• LTV limits
• Eligibility requirements
• Property types for the Non-QM HELOC
• Property types for a standard HELOC

Quick recap

• Condo and PUD files need HOA information, so request it early.
• A 2–4 unit appraisal looks at the units and their rents, so keep leases organized.
• Fix safety and visible maintenance items before the appraisal, not after.