One-Time-Close Construction” loans, “Construction-to-Perm” loans. For California residential construction loans, we offer a few options:
Residential Ground-Up Construction Loans for borrowers using an outside contractor to build a primary, second/vacation home.
“Home Improvement Loans” require a minimum $100,000 in improvement cost and are qualified and treated the same as a ground-up construction loan with the same ARM terms, costs, etc. Our home improvement bank loan is a 1st loan only. If you have substantial equity in the property as-is you should consider a standard Home Equity Line of Credit instead of a construction loan, since the cost will be lower and the process easier.
NO INVESTMENT PROPERTY OR “SPEC” CONSTRUCTION BANK FINANCED TRANSACTIONS. Investment / Spec construction financing is HARD MONEY only.
“Construction-To-Perm” Loan
If you already own your lot and have approved plans and a contract with your builder you’ll need a construction–to-perm loan in most cases. A construction-to-perm loan is a combination of two loans — one for the construction of the home followed by permanent financing when the construction is completed. You’ll need a minimum 20% or more cashequity in the total project cost to qualify. Owner-Builders are allowed for primary residence construction only, provided the majority of income received is from general contractor activity. Otherwise, licensed builders with an operational general contracting company and good credit is required.
“One Time Close” Construction Loan
For those who have approved plans and a contract with a builder but have not yet purchased a lot, a One-Time-Close construction loan allows you to combine the lot purchase, construction, and permanent financing into one loan — saving you thousands of dollars in costs versus multiple loans. The down payment required will be based on a percentage of cost-to-build, depending on the amount.
Private Money Jumbo Construction Loan
We offer hard money jumbo construction loans over $1 million dollars, provided there is a minimum 30% documented cash equity vested in the project based on total cost, and the loan caps at 65% of finished value. Decent credit and a viable exit strategy are required. Call for more info.
For construction loans in California, call me directly at (949) 478 – 5451
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