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Bridge Loans in Escalon
Escalon's small-town market moves differently than Stockton or Modesto. Properties sit longer, which makes bridge loans risky if you're counting on a quick sale.
Most bridge loan lenders want exit strategies that don't depend solely on selling in a 90-day market. Your backup plan matters more here than in faster metros.
You need 20-30% equity in your current property to qualify. Bridge lenders calculate combined loan-to-value across both properties, usually capping at 75-80% CLTV.
Credit scores matter less than equity and exit plan. Most lenders accept 620+, but your property equity does the heavy lifting here.
Bridge loans come from private lenders and specialty finance companies, not your neighborhood bank. We work with about 15 lenders who actually fund in San Joaquin County.
Rates run 7-12% depending on equity position and term length. Expect 1-2 points in origination fees, plus third-party costs around $3,000-$5,000.
Bridge loans work best when you've found your next property but your Escalon home needs 60-90 days to close. They fail when sellers assume their house will move in 30 days.
I push clients toward contingent offers first. Bridge financing costs $8,000-$15,000 in a typical Escalon transaction. Save that money if the seller will wait.
Hard money loans fund faster but cost more, running 10-15% with higher fees. Bridge loans offer slightly better terms because you're owner-occupied, not investing.
Home equity lines work if you have time and strong credit. They cost less but take 30-45 days to fund. Bridge loans close in 2-3 weeks when speed matters.
Escalon's rural designation affects some lenders' appetite. Properties on larger parcels or with well/septic sometimes need specialized bridge lenders who understand ag-adjacent properties.
The Central Valley sees seasonal market shifts. Listing your current property in spring while buying with bridge financing in winter can backfire if sales stall.
Most terms run 6-12 months. Extensions cost 1-2 points if your property hasn't sold, so budget for potential delays in this slower market.
You need a backup exit plan, usually refinancing the new property into permanent financing. Lenders require proof you can qualify without selling.
Yes, but fewer lenders accept properties over 5 acres or with agricultural components. Equity requirements often jump to 30-35% for rural parcels.
Most lenders appraise both properties to establish combined LTV. Budget $1,000-$1,500 total for both appraisals in San Joaquin County.
Most lenders set $75,000-$100,000 minimums. Below that, fees eat up too much of the loan to make economic sense for either party.
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.