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Bridge Loans in Chowchilla
Chowchilla's small-town real estate market moves at its own pace. Bridge loans let you buy before selling without waiting for a slow Madera County sale to close.
Most Chowchilla buyers need bridge financing when upgrading from starter homes to larger properties. The alternative is renting between transactions, which costs money and creates double moves.
Agricultural property owners in the area use bridge loans frequently. Selling land parcels takes months while the right house sits on the market for weeks.
You need at least 20% equity in your current property. Lenders approve based on combined property value, not just income.
Credit scores start at 620, but most approvals happen above 680. Lenders want to see your existing home actively listed or under contract.
Debt-to-income ratios matter less here than with traditional loans. The focus is exit strategy: proof you can repay when your current home sells.
Bridge loan lenders divide into two groups: portfolio lenders and specialty finance companies. Portfolio lenders offer better rates but slower processing.
Most national banks don't touch bridge loans anymore. You're working with regional lenders and private finance companies that price for speed and risk.
Expect rates 2-4% above conventional mortgages. Rates vary by borrower profile and market conditions, with fees typically running 1.5-3% of loan amount.
Half my Chowchilla bridge loan clients end up not needing the full term. Their old house sells faster than expected, triggering early payoff penalties they didn't anticipate.
The make-or-break factor is pricing your existing home correctly. Overpriced listings turn a 6-month bridge loan into a 12-month nightmare with extension fees stacking up.
I structure most bridge loans as interest-only to keep monthly costs down. You're already carrying two properties—principal payments on temporary financing just burn cash.
Hard money loans cost more but care less about your current home's marketability. Bridge loans require an exit strategy; hard money just needs equity and an appraisal.
Some borrowers use home equity lines instead of bridge loans. HELOCs work if you only need a down payment, but won't cover a full second property purchase.
Contingent offers are the alternative nobody wants. Chowchilla sellers reject contingent offers when they have non-contingent options, which kills deals in competitive pockets.
Chowchilla's housing inventory stays tight in the under-$400k range. Bridge loans give you first-mover advantage when the right property hits the market.
Properties here take longer to sell than in Fresno or Madera. Build that reality into your bridge loan term—don't assume a 30-day sale in a 90-day market.
The agricultural employment cycle affects timing. Listing a home during harvest season when workers have cash beats listing during planting season when money is tight.
You request an extension at 1-2% of the loan amount or refinance into permanent financing. Most lenders allow one 6-month extension if the property shows active marketing.
Some lenders accept ag land as collateral but require residential appraisals on both properties. Expect lower loan-to-value ratios on agricultural parcels than residential homes.
Yes, lenders appraise both your current property and the new purchase. Both appraisals must support the combined loan amount you're requesting.
Most lenders cap combined loan-to-value at 80% across both properties. If you owe $200k on a $400k house, you can borrow roughly $120k for the new purchase.
Rates currently range from 8-12% depending on equity position and credit profile. Rates vary by borrower profile and market conditions—expect higher costs than conventional 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.