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Community Mortgages in Selma
Selma sits in Fresno County's agricultural corridor, where traditional lending often misses working families with solid income but non-standard documentation. Community mortgage programs fill that gap with flexible underwriting that values employment stability over credit perfection.
These programs target first-time buyers and moderate-income families who get priced out of conventional loans. In Selma's market, where affordability still exists compared to coastal California, community mortgages help locals buy instead of rent.
Most community mortgage programs accept credit scores from 580-620, well below the 640-660 floor for conventional loans. You need steady employment history—typically two years—but seasonal agricultural work counts if documented properly.
Income limits vary by program but generally cap around 80-100% of Fresno County's area median income. Down payments start at 3%, and many programs offer down payment assistance grants that don't require repayment if you stay in the home.
Not every lender offers community mortgage programs—you won't find them at big banks focused on prime borrowers. Credit unions and community development lenders participate most actively, but they're picky about which profiles qualify.
We work with lenders who specialize in Fresno County community programs and understand local income patterns. Some programs reserve funds for specific zip codes or employment sectors, so shopping across multiple lenders matters more here than with standard loans.
Community mortgages work best for buyers with lower credit but reliable income—think steady W-2 jobs in agriculture, education, or healthcare. If you're self-employed with strong credit and income, a conventional loan with 3% down usually beats community programs on rate and flexibility.
The income caps trip up more buyers than credit requirements. A household earning $85K might not qualify despite affordable Selma prices. Also, mandatory homebuyer education adds 8-12 hours of coursework before closing—plan for that timeline.
FHA loans compete directly with community mortgages—both accept 580 credit scores and 3.5% down. FHA typically has higher loan limits and no income caps, but community programs often layer in down payment grants that FHA doesn't provide.
If you qualify for USDA in Selma's eligible areas, that trumps community mortgages with zero down payment. But USDA income limits are stricter, and the programs move slower. Conventional 97% LTV loans beat community mortgages on rate if your credit hits 680.
Selma's housing stock includes many older homes under $300K where community mortgage limits work fine. But some programs cap loans at conforming limits minus 20%, which can squeeze buyers aiming for newer construction or larger properties.
Agricultural employment dominates Selma's economy—community mortgage underwriters familiar with seasonal income patterns make a difference. Programs through California Housing Finance Agency specifically accommodate farm workers with variable pay schedules documented through employer letters.
Most programs cap household income at 80-100% of area median, around $65K-$80K for a family of four. Limits adjust by household size and specific program.
No, these programs require owner occupancy as your primary residence. Investment properties and vacation homes don't qualify under any community mortgage program.
Lenders accept employer verification letters showing year-round or seasonal employment history. Two years of W-2s or 1099s from the same employer strengthen applications.
Yes, any loan above 80% LTV requires PMI or similar coverage. Some programs build insurance costs into rates instead of separate monthly premiums.
Community mortgages add 5-10 days over standard FHA timelines due to income verification and program compliance reviews. Budget 35-40 days total to close.
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.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
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.
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.