Construction Loans
in California
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- 5-Star Rated Mortgage Broker
- Get Finances for Your Construction
- Residential and Commercial Loans
- Hard Money Construction Loans
- Office located in Los Angeles
What type of property are you refinancing?
Single Family
Multifamily
Condominium
Townhouse
How will this property be used?
Primary Residence
Vacation Home
Investment Property
Estimate credit score
Excellent 770+
Good 660-719
Avg. 620-659
Below avg. 580-619
Poor <579
What type of property are you purchasing?
Single Family
Multifamily
Condominium
Townhouse
Are you a first-time home buyer?
Yes
No
How will this property be used?
Primary Residence
Vacation Home
Investment Property
Estimate credit score
Excellent 770+
Good 660-719
Avg. 620-659
Below avg. 580-619
Poor <579
Final Step
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Summary
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What is a Home Construction Loan?
A self-build or construction loan is a type of short-term loan (from 6 to 18 months), used to finance new home builds or major property projects in Los Angeles and California
If you have an ambition of building a custom home or commercial property.
It is becoming increasingly difficult to get the money for real estate projects via conventional construction loans issued by banks.
The biggest benefit is that you can get this loan in a matter of days.
That’s where private lending hard money loans come into the picture. Hard money construction loans are often charged higher interest.
How Do Construction Loans Work?
Your construction company calculates the required amounts of money for certain stages of building construction. In addition, a work plan and a time frame are drawn up. Creditors will compensate “draws” the builder for each completed construction stage and renovation after appropriate confirmation. The final draw directly depends on the amount of work performed by the building company.
It is also crucial for you as a builder to have a reliable fund control company. Fund control companies protect the interests of all participants in the construction: investors, lenders owners, and contractors. Companies that provide such services manage the disbursement of funds during the construction project in accordance with a job performance agreement.
Have Questions? Reach us out.
In-Person at LA Office
1810 W Burbank Blvd #150, Burbank, CA 91506
Cell-phone
M-F 10 AM-5 PM (PST)
On-line
Simply e-mail or use online-chat
The Benefits of a Construction Loan
A construction loan is beneficial if you are going to build a house from scratch on your own land or buy an already under-construction building at the initial stage. Here are the most significant advantages:
Low initial payments
The best option at the initial construction stage.
Set rates
Clear rates and no pitfalls. One-time close option.
Total control
You can control every step of the new build loan.
Getting a Construction Loan
The procedure begins with the selection of a pre-approved amount based on budget, plans, and type of project.
Step 1
Pre-Qualification
Talk to Us to Know Your Options
Step 2
Start a Loan Program
We Shop You Choose
Step 3
Pre-Approval
Get a Loan Approval on the Terms You Want
step 4
Closing
Your Goal Achieved
Self-Build Loan Program Highlights
- 7-15-day closings
- Same-day decisions and quotes
- We lend up to 100% of the lot purchase and up to 100% of the construction costs
- Rates from 8.99-12%
- 1st-time builders OK
- Loan amounts starting with 100k and up
- Residential and commercial properties.
Apply for a Construction Home Loan
The application process takes 24-48 hours after it was received:
- Completed application.
- Plans, drawings, and permits (if applicable).
- Construction budget.
- Your experience or track record (if applicable).
- Credit report and Income may be requested in s case by case scenario.
Construction Loans in California FAQ
What are construction loans, and how do they work?
Construction loans are short-term financing that release funds in stages, or ‘draws,’ tied to project milestones such as foundation, framing, or final completion. At the end, they often convert to a long-term mortgage.
What are the benefits of using a construction loan over other financing options?
Key advantages include customized funding disbursed as your project progresses, interest-only payments during construction to ease cash flow, and flexible terms with the option to convert to a permanent mortgage. See our Benefits section above for more detail.
What are the eligibility requirements for construction loans in California?
Typical requirements include a good credit score (around 680 or higher), an experienced licensed builder, and comprehensive project documentation such as architectural plans, budget, and timeline.
What are the potential downsides to a construction loan?
“Downsides include higher interest rates compared to traditional mortgages, a more complex approval process, and the risk of cost overruns requiring additional funds.
How do I choose the right construction loan lender in Los Angeles?
Look for lenders with proven experience in construction loans, a range of programs suited to your project, and strong client feedback. In Los Angeles, local market knowledge is key, choose a lender familiar with regional building costs, permitting processes, and contractor standards.
What is the application process for a construction loan?
The process begins with an initial consultation to review your project and financing options. You’ll then submit documentation including financials, project plans, and builder details. After an appraisal and underwriting review, approval is granted and funds are disbursed in stages (draws) as construction milestones are completed.
What can I do to increase my chances of loan approval?
Work with a licensed builder who has a strong track record, prepare thorough architectural and financial plans, and include a contingency fund in your budget to account for unforeseen costs.
What are some key things to consider when seeking a construction loan in Los Angeles?
In Los Angeles, consider project scope, permitting requirements, and local building costs. Lenders will pay close attention to detailed plans, experienced contractors, and whether your budget includes reserves for unexpected expenses. Comparing interest rates and terms from multiple lenders is also critical in California’s competitive market.
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