Loading
Bridge Loans in Madera
Madera's real estate market moves at its own pace, different from coastal California. Bridge loans solve the timing problem when you find your next property before your current one sells.
These short-term loans give you 6-12 months to close on a new purchase without waiting for your sale to finish. You avoid contingent offers that sellers often reject in competitive situations.
Most bridge lenders want 20-30% equity in your current property. They'll lend against that equity to fund your down payment on the new purchase.
Credit scores matter less than equity position. Lenders focus on your exit strategy—either selling the old property or refinancing into permanent financing. Your debt-to-income ratio gets ignored since these loans are temporary.
Bridge loans live in the private lending world, not through Fannie Mae or traditional banks. You're working with portfolio lenders who price based on risk, not published rate sheets.
Rates run 7-12% currently depending on your equity position and property type. Rates vary by borrower profile and market conditions. Expect 1-3 points in fees plus higher closing costs than conventional loans.
Most Madera borrowers don't need bridge loans—they need better timing advice. If your market allows 30-60 day closings, coordinate your sale and purchase instead of paying 10% interest.
Bridge loans make sense in three situations: buying a foreclosure or short sale that won't wait, upgrading during a hot seller's market, or buying investment property while your primary is listed. Outside these scenarios, you're paying premium rates for convenience you might not need.
Bridge loans cost more than hard money but close faster than construction loans. Hard money works if you're buying distressed property. Construction loans fit major renovations. Bridge loans solve pure timing gaps.
Interest-only loans might work if you can qualify with both mortgages on your debt ratio. Investor loans apply if the new property generates rental income. Bridge financing is the nuclear option when conventional programs won't work.
Madera properties appraise differently than Fresno or coastal markets. Bridge lenders discount agricultural land and rural properties more heavily than urban single-family homes.
Your current property needs a clear value that justifies the loan amount. If you own acreage or unique property types common in Madera County, expect conservative appraisals. That affects how much equity the lender will lend against.
Most bridge lenders close in 14-30 days with complete documentation. All-cash equivalent speed depends on your equity position and property type.
You either pay off the bridge loan through refinancing or extend the term at additional cost. Have a backup plan before you sign.
Yes, but lenders heavily discount ag land value and require larger equity cushions. Expect 40-50% LTV maximums on working farms.
Most bridge loans defer payments or roll interest into the loan balance. You continue paying your original mortgage until it sells.
Figure 4-6% of the loan amount in total cost—interest plus fees. A $200K bridge loan costs $8K-$12K all-in for six months.
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.