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Construction Loans in Selma
Selma's agricultural economy creates unique opportunities for custom builds on larger parcels. Many buyers here want properties tailored to rural living, not cookie-cutter tract homes.
Construction financing in Fresno County works differently than traditional mortgages. You'll face draw schedules, builder requirements, and conversion terms most borrowers haven't encountered.
Vacant land outside Selma proper costs less than developed lots in urban areas. But raw land adds complexity—utilities, access roads, and permits all affect your construction budget and timeline.
Construction lenders want 680+ credit and 20% down minimum. Some programs require 25-30% depending on builder experience and project scope.
You'll need detailed construction plans, a licensed contractor, and a realistic budget breakdown. Lenders fund in stages as work completes, not upfront like purchase loans.
Most construction loans run 12-18 months interest-only during the build. After completion, they convert to a standard 30-year mortgage or require a separate permanent loan.
Local credit unions in Fresno County often beat big banks on construction rates. They understand Selma's market and work with regional builders regularly.
National lenders offer one-close construction-to-permanent loans that eliminate the hassle of refinancing after completion. You lock your permanent rate upfront, which matters when building takes 12+ months.
Some lenders won't touch owner-builder projects where you act as general contractor. Others allow it but charge higher rates and require construction experience documentation.
Most Selma construction deals fail during the budget phase, not credit approval. Underestimate your costs by 10%, and you'll either halt mid-build or scramble for gap financing at terrible terms.
Builder selection matters more than most borrowers realize. Lenders keep lists of approved contractors with track records of on-time, on-budget completions. Using an unknown builder means extra scrutiny and documentation.
The appraisal happens twice—once on plans before funding, then again on the completed home. If the finished value comes in low, you'll need cash to cover the gap before conversion.
Bridge loans work for buyers who need temporary financing before construction begins. Hard money covers land purchase when you can't qualify for traditional financing yet.
After your home completes, you'll convert to a conventional or jumbo mortgage depending on loan size. Jumbo kicks in above $806,500 in Fresno County for 2025.
Renovation loans like 203k or HomeStyle let you buy existing properties and improve them. They're simpler than ground-up construction but limit your design control.
Selma's building department processes permits faster than Fresno city limits, but you still need 4-8 weeks for plan approval. Factor this into your construction timeline and rate lock period.
Well and septic systems add $30,000-50,000 to rural builds outside city utilities. Lenders include these costs in your construction budget but require contractor bids upfront.
Summer heat in Selma can slow exterior work and increase labor costs. Experienced local builders schedule concrete pours and framing during cooler months to stay on budget.
Most lenders require 20-25% down for construction loans. Owner-builder projects may need 30% down due to higher risk.
Yes, through a HELOC or bridge loan. Many Selma buyers tap existing equity while their construction loan covers the build costs.
You'll need to cover overruns with cash immediately. Lenders won't increase your loan mid-build without a new appraisal showing higher completed value.
You pay interest only on funds already disbursed. As the lender releases more money for each build phase, your interest payments increase.
Expect 45-60 days from application to first draw. You need approved plans, contractor agreements, and a complete budget before funding starts.
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.
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.
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.