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Bridge Loans in Clovis
Clovis homeowners often face tight timing when moving up to a larger home or relocating within the area. Bridge loans solve the problem of needing to buy before selling your current property.
These short-term loans typically last 6-12 months, giving you the financial flexibility to make competitive offers without a sale contingency. This matters in Fresno County markets where sellers prefer clean offers.
Bridge financing works well in Clovis where many families upgrade from starter homes in established neighborhoods to custom properties in newer developments.
Lenders evaluate bridge loans based on equity in your current home and ability to carry two mortgages temporarily. Most require 20-30% equity in the property you're selling.
Your existing home serves as collateral, and some lenders will consider both properties. Credit requirements vary but typically fall in the 620-680 range for most programs.
Income verification confirms you can handle overlapping payments. Rates vary by borrower profile and market conditions, but expect higher costs than traditional mortgages due to the short-term nature.
Traditional banks in Clovis offer bridge loans but often have lengthy approval processes that defeat the purpose. Private lenders and specialized bridge loan companies provide faster decisions.
Portfolio lenders who hold their own loans show more flexibility on terms and qualification criteria. Some focus specifically on California real estate investors and move-up buyers.
Working with a broker gives you access to multiple bridge loan sources, from local hard money lenders to national specialty finance companies. This comparison shopping can save thousands in fees.
The biggest mistake Clovis buyers make is waiting until they find their next home to explore bridge financing. Get pre-approved early so you know your buying power and can act quickly.
Calculate total carrying costs carefully. You'll pay interest on the bridge loan plus your existing mortgage until your current home sells. Budget for 3-6 months of dual payments as a safety margin.
Have a solid listing strategy for your current property before using bridge financing. Most lenders want to see your home listed or under contract within 30-60 days of bridge loan funding.
Bridge loans differ from hard money loans in purpose and terms. Hard money focuses on property value and works for investors, while bridge loans emphasize your exit strategy and work for homeowners.
Home equity lines of credit offer cheaper money but require months to establish and may not provide enough cash for a down payment. Bridge loans fund quickly with higher limits based on home value.
Interest-only loans provide lower monthly payments but don't solve timing issues. Bridge loans specifically address the gap between buying and selling, making them the right tool for this situation.
Clovis home values and neighborhood stability work in your favor for bridge financing. Lenders view properties in established areas like Old Town Clovis as lower risk compared to more volatile markets.
The local real estate market's seasonal patterns affect bridge loan strategy. Spring and early summer typically see faster sales, which can shorten your bridge period and reduce total interest costs.
Fresno County properties may require specialized appraisals that add 1-2 weeks to processing. Factor this timeline into your purchase contract when using bridge financing for your offer.
Most lenders offer up to 80% of your current home's value minus existing mortgage balance. The exact amount depends on your equity position and the combined loan-to-value ratio across both properties.
Most bridge loans include extension options for 3-6 months with additional fees. Some lenders may convert to longer-term financing. Having your home priced right from day one prevents this situation.
Yes, bridge loans work well for new construction purchases. The loan gives you time to sell your current home while the builder completes your new property, often perfectly timing both transactions.
Most bridge loans require interest-only monthly payments. Some programs defer all payments until your existing home sells. Payment structure depends on the specific lender and loan program.
Private bridge lenders can close in 7-14 days with proper documentation. Traditional bank bridge loans take 30-45 days. Speed depends on appraisal completion and title work complexity.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.