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Bridge Loans in Willits
Willits buyers face a timing problem: great properties move fast in Mendocino County, but selling your current home takes time. Bridge loans solve this by letting you buy before you sell.
These short-term loans typically run 6-12 months. You use your existing equity to fund a down payment while both properties sit in your name temporarily.
Lenders require significant equity in your current property—usually 20-30%. They'll also verify that your existing home has clear selling potential in the Willits market.
Credit matters less than equity here. Most lenders want 620+ credit and proof your current home will sell within the loan term. Exit strategy is everything.
Bridge loans sit in the non-QM space, which means fewer lenders offer them. Most national banks won't touch these—you need specialty lenders who understand fast property transitions.
Rates run 7-12% depending on your equity position and exit timeline. Expect to pay 1-2 points at closing plus higher monthly costs during the bridge period.
Most borrowers underestimate the carrying cost of two properties. You'll have two property tax bills, two insurance policies, and maintenance on both. Run the math before committing.
The best candidates have hot properties that will sell in 60-90 days. If your current home needs work or sits in a slow pocket of Mendocino County, fix that first.
Hard money loans cost more but offer even faster funding. Construction loans work if you're building, not buying existing. Bridge loans split the difference—faster than conventional, cheaper than hard money.
Interest-only options exist during the bridge period to reduce monthly payments. This helps if your existing home takes longer to sell than expected.
Willits sits at the gateway to Mendocino County's rural areas. Properties here range from in-town Victorians to ranchettes outside city limits. Bridge lenders care which type you're buying and selling.
Rural properties take longer to sell. If your current home sits on acreage or outside town, expect lenders to require larger equity cushions or shorter bridge terms.
Most lenders offer 6-month extensions at higher rates. You can also refinance the new property into permanent financing and list the old home longer.
Yes, but expect higher rates and larger down payments. Lenders view investor bridges as riskier than primary residence transitions.
Specialty lenders close in 10-21 days typically. Speed depends on appraisals for both properties and clean title on your existing home.
Rarely. Most bridge lenders want improved properties on both ends. Raw land creates too much selling uncertainty for short-term financing.
Expect 20-25% minimum. Rural properties may require 30% due to longer selling timelines in Mendocino County's less dense markets.
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.