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Union City sits in the heart of Alameda County's East Bay, where new restaurants and community projects signal steady neighborhood growth.
Construction loans let you build or substantially renovate rather than buy existing. You'll work with a lender who funds the project in stages as work progresses, not all at closing.
620
Minimum FICO
10% to 20%
Typical down payment
30 to 45 days
Closing timeline
0.25% to 0.5% higher
Rate premium vs. conventional
$126,240
County median household income
Construction Loans in Union City
Construction loans typically require a 620+ FICO score, though 640+ is more common for competitive rates. Down payments run 10% to 20% depending on the lender and your credit profile.
Lenders look at your construction timeline, contractor experience, and detailed plans — not just your credit and income. You'll need proof of land ownership or a purchase agreement.
Local decision guide
Use this guide to connect construction loans eligibility, lender expectations, and local market factors before comparing payment options in Union City.
Union City sits in the heart of Alameda County's East Bay, where new restaurants and community projects signal steady neighborhood growth.
Construction loans let you build or substantially renovate rather than buy existing. You'll work with a lender who funds the project in stages as work progresses, not all at closing.
Construction loans typically require a 620+ FICO score, though 640+ is more common for competitive rates. Down payments run 10% to 20% depending on the lender and your credit profile.
Construction lending in California is dominated by portfolio lenders and regional banks. Larger national mortgage companies often avoid construction loans because they're harder to sell on the secondary market.
Closing timelines run 30 to 45 days for construction loans, longer than purchase mortgages. Lenders typically require a licensed general contractor and detailed cost estimates.
Construction loans make sense in Union City when you've found land or an older home you want to rebuild. The county's median household income of $126,240 supports the larger down payment and higher rates construction requires.
Construction loans don't pencil for buyers with tight timelines or limited cash reserves. You'll need to carry two mortgages during construction — one on the land, one on the new home.
A conventional purchase mortgage closes faster and carries a lower rate — you're buying an existing home with known condition. Construction loans take longer and cost more because the lender funds the project in stages and carries construction risk.
FHA loans let you put down as little as 3.5%, but they don't work for new construction. VA loans offer zero down for eligible veterans, but again, only on existing homes. Construction loans are the only path if you're building from the ground up.
Dublin City Council approved a 113-unit senior affordable housing project on Regional Street, signaling continued development in the East Bay. That kind of growth attracts new residents and supports long-term home values.
New restaurants — Filipino, burger, Mexican, and Nicaraguan spots — opened recently across the East Bay. That dining expansion reflects population growth and economic activity. A newly built home in Union City sits in a neighborhood that's actively improving.
A construction loan funds your project in stages as work progresses. A mortgage funds the full purchase price at closing. Construction loans carry higher rates and require detailed plans.
Most lenders require 10% to 20% down on construction loans. The exact amount depends on your credit score, the contractor's experience, and your project's complexity. Call for a specific quote based on your situation.
Yes — 620 is the typical minimum FICO for construction loans. Rates will be higher than for borrowers with 700+ scores. Lenders also look closely at your income, reserves, and the contractor's track record at this credit level.
Construction loans typically close in 30 to 45 days. That's longer than a conventional purchase because lenders need detailed plans, contractor bids, and cost estimates. Your timeline depends on how quickly you can provide those documents.
Once the home is complete, you refinance the construction loan into a permanent mortgage. The permanent loan pays off the construction loan and becomes your regular 15- or 30-year mortgage. Plan for a second closing and appraisal at that point.