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Bridge Loans in Stockton
Stockton buyers often need bridge financing when selling one home while buying another. The timing gap creates cash flow problems that traditional loans can't solve.
Bridge loans work for 6-12 months while you close the sale on your existing property. Most Stockton borrowers use them to avoid contingent offers that sellers reject in competitive situations.
This is expensive money — expect rates 3-5 points higher than conventional mortgages. You're paying for speed and flexibility, not long-term affordability.
You need significant equity in your current property — most lenders want 25-30% combined equity across both homes. Credit scores matter less than equity position and exit strategy.
Lenders approve based on your ability to carry two mortgages temporarily. They'll verify your current home is listed or has a solid sale timeline.
Income documentation varies by lender. Some require full W-2 verification, others focus purely on asset position and property values.
Traditional banks rarely offer bridge loans anymore. You're working with private lenders and non-QM specialists who price based on risk.
Our network includes 15-20 lenders actively doing bridge loans in San Joaquin County. Rates and terms vary wildly — one lender might charge 8% while another wants 11% for the same deal.
Speed matters with these loans. Good lenders fund in 10-15 days, not 30-45. That timeline difference often determines whether you can close on your new purchase.
Most Stockton borrowers should explore alternatives first. A HELOC on your current home or family bridge loan costs far less if you qualify.
Bridge loans make sense in two scenarios: you found your next home before selling, or you're buying in a market where contingent offers get rejected. Outside those situations, the cost rarely justifies the convenience.
Watch the fee structure closely. Some lenders load up origination points and exit fees that turn a 9% rate into an effective 12% cost. We see this constantly with direct-to-consumer bridge lenders.
Hard money loans work similarly but focus on investment properties rather than owner-occupied transitions. Bridge loans typically offer slightly better rates for primary residence moves.
Interest-only loans provide payment relief but don't solve the down payment timing problem. You still need cash to close on the new property.
Home equity lines give you the cheapest short-term money if your current property has enough equity. Rates run 4-6 points lower than bridge financing.
Stockton's market cycle affects bridge loan demand. When inventory is tight and homes sell in days, more buyers need bridge financing to compete without contingencies.
San Joaquin County appraisals sometimes lag market changes. Bridge lenders care less about appraisal precision than exit strategy, which helps when comps are stale.
Local title companies familiar with bridge loans speed up closing. Some Stockton title offices haven't seen these in years and slow the process with basic questions.
Most lenders offer 6-month extensions at higher rates. You're better off pricing the home aggressively from day one to avoid this scenario.
Yes, but you'll pay investor rates which run 1-2 points higher. Lenders treat this like hard money financing.
Usually yes, but some lenders use desktop appraisals or broker price opinions to save time. Full appraisals add 7-10 days to closing.
Most lenders cap combined loan-to-value at 75-80% across both properties. Your equity determines borrowing power, not loan limits.
Nearly always yes. You're paying interest monthly while waiting to sell, then paying off principal from sale proceeds.
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.