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Bridge Loans in Selma
Selma's agricultural economy creates unique timing challenges for property owners. Growers and processors often need to move fast on commercial or residential deals while waiting on harvest proceeds or property sales.
Bridge loans solve the gap between contracts. You buy the new property before closing on your current one. Rates run higher than conventional loans, but you avoid contingent offers that sellers reject in competitive markets.
Lenders focus on equity in your existing property, not your debt ratios. Most require 30-40% equity in the property you're selling. Credit scores matter less than the deal structure and exit strategy.
You need a solid plan to repay within 12-18 months. That means a listing agreement or a clear sale timeline. Bridge lenders won't fund speculation—they want proof you're moving toward permanent financing or a confirmed sale.
Bridge loans come from private lenders, not banks. Each lender sets their own terms. Rates currently range from 8-12% with 1-2 points upfront. Some charge monthly interest only, others compound it into the payoff.
Fresno County properties get treated differently than coastal California. Lower values mean smaller loan amounts, which some lenders won't touch. You need a broker who works with lenders comfortable in Central Valley ag markets.
Most Selma bridge deals involve moving from one farmhouse to another or upgrading commercial ag space. The mistake I see: borrowers underestimate how fast they need to sell. Market conditions shift. Plan for 6 months even if you think it'll take 3.
Bridge loans work best when your existing property is already listed with an agent. Some lenders require this before funding. The stronger your sale probability, the better your rate. A pending offer can cut your cost by 1-2 points.
Hard money loans fund faster but cost more—useful for distressed properties or foreclosures. Bridge loans assume you're moving between stable properties. Interest-only loans work if you have income to qualify, but they take 30-45 days to close.
Construction loans make sense if you're building the new place. Investor loans require rental income to qualify. Bridge loans skip those requirements entirely. You're borrowing against equity, not income or future rents.
Selma properties under $300K face loan minimum hurdles. Many bridge lenders won't go below $150K, which cuts out entry-level homes. If your deal is smaller, expect fewer options and higher rates.
Agricultural land complicates bridge loans unless it's residential zoned. Lenders worry about marketability. A farmhouse on 5 acres sells easier than raw orchard land. Appraisals take longer here—factor an extra week into your timeline.
Most bridge loans close in 14-21 days. Ag properties may add a week for appraisals since fewer comps exist in rural Fresno County.
You can extend most bridge loans for 6-12 months with an extension fee. Plan ahead—lenders charge 0.5-1% of the loan amount per extension.
Most lenders require monthly interest-only payments. Some roll interest into the final payoff, but that costs more over time.
Yes, as long as you have equity in another property to secure the loan. Investment deals often get slightly higher rates than owner-occupied.
You'll need to refinance into permanent financing or risk foreclosure. Always have a backup exit strategy before taking bridge financing.
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.