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Placerville sits in the Sierra Nevada foothills, where land is available but existing inventory is tight. Building new often makes more sense than waiting for a listing.
El Dorado County attracts buyers who want acreage, privacy, and custom builds. Construction loans are a practical fit for this market.
680 (some at 640)
Min Credit Score
20–25%
Typical Down Payment
12 months to build
Typical Loan Term
Yes, most lenders
Licensed GC Required
Variable during build
Rate Type
Construction Loans in Placerville
Most lenders want a 680+ credit score for construction loans. Some will go to 640, but expect tighter reserves and a larger down payment.
Down payments typically run 20-25%. You'll also need approved plans, a licensed contractor, and a detailed construction budget before closing.
Local decision guide
Use this guide to connect construction loans eligibility, lender expectations, and local market factors before comparing payment options in Placerville.
Placerville sits in the Sierra Nevada foothills, where land is available but existing inventory is tight. Building new often makes more sense than waiting for a listing.
El Dorado County attracts buyers who want acreage, privacy, and custom builds. Construction loans are a practical fit for this market.
Most lenders want a 680+ credit score for construction loans. Some will go to 640, but expect tighter reserves and a larger down payment.
Construction lending is a specialty product. Most big retail banks offer it, but their guidelines are rigid and their draw processes are slow.
Wholesale lenders we work with handle rural and foothill properties regularly. That matters for Placerville builds, where lot acreage can complicate appraisals.
The biggest mistake I see: borrowers lock a rate without finalizing their plans. Construction timelines slip, and rate locks expire. Budget for extensions.
One-time-close construction loans combine the build and permanent mortgage into one closing. That saves you a second round of closing costs and rate risk.
Bridge loans work if you're financing land while selling another property. Hard money is faster but expensive — use it only for short-term gaps.
Conventional construction-to-perm loans are the most cost-effective path for borrowers with strong credit and a clear build plan.
El Dorado County has specific zoning rules for rural parcels. Septic, well permits, and fire clearance all affect your build timeline and lender approval.
Placerville's elevation and wildfire zone designations can affect insurance requirements. Lenders will require proof of builder's risk coverage before releasing funds.
You borrow against a draw schedule tied to build milestones. Funds release as work is completed and inspected.
Most lenders require a licensed GC. Owner-builder programs exist but are rare and come with stricter requirements.
It combines your construction financing and permanent mortgage into one closing. You avoid a second appraisal and second set of closing costs.
Some do. If you don't already own the lot, certain programs roll land and construction costs into a single loan.
Typical terms run 12 months. Extensions are possible but cost extra — build your schedule with buffer time.
Yes. Lenders require builder's risk insurance, and properties in high fire zones may face additional underwriting scrutiny.