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Reedley sits in Fresno County's agricultural heartland where buildable lots often cost less than finished homes. Construction loans let you build exactly what you want instead of settling for dated inventory.
Most Reedley builds run $150-$250 per square foot depending on finishes and site prep. As of February 2026, lenders expect rate cuts later this year but not immediately — lock timing matters if you're breaking ground soon.
Construction Loans in Reedley
You need 680+ credit and 20% down minimum. Most lenders want reserves covering six months of payments plus detailed builder contracts and blueprints before approving a dime.
Your debt-to-income can't exceed 43% based on the future mortgage payment, not just the construction interest. If you're keeping an existing mortgage during the build, both payments count against you.
Local decision guide
Use this guide to connect construction loans eligibility, lender expectations, and local market factors before comparing payment options in Reedley.
Reedley sits in Fresno County's agricultural heartland where buildable lots often cost less than finished homes. Construction loans let you build exactly what you want instead of settling for dated inventory.
Most Reedley builds run $150-$250 per square foot depending on finishes and site prep. As of February 2026, lenders expect rate cuts later this year but not immediately — lock timing matters if you're breaking ground soon.
You need 680+ credit and 20% down minimum. Most lenders want reserves covering six months of payments plus detailed builder contracts and blueprints before approving a dime.
Most big banks won't touch one-off custom builds in Reedley. Regional lenders and credit unions dominate here because they understand local contractors and can assess land value better than national underwriters.
We shop 200+ wholesale lenders to find those comfortable with rural Fresno County construction. Rate and term differences hit 0.5-1.0% depending on whether you're doing a single-close or two-loan structure.
Single-close construction loans convert automatically to permanent financing when the house is done. You close once, lock your rate now, and avoid a second round of fees and appraisals when the build finishes.
In Reedley, budget 10-15% over your contractor's estimate for overruns and site surprises. Lenders hold a contingency reserve but it rarely covers what actually happens on rural builds with well or septic unknowns.
Bridge loans help if you need to buy land first and can't qualify carrying two mortgages. Hard money works when your credit or income won't pass construction loan underwriting but you have equity elsewhere.
Conventional loans can't fund raw dirt or half-built structures. If you're renovating an existing Reedley property instead of building from scratch, a conventional rehab loan often beats construction rates by 0.5-0.75%.
Reedley sits in unincorporated pockets where septic, well drilling, and power hookups add $30K-$60K you won't see in a Fresno city lot. Lenders need engineered septic plans before approving loans on parcels without sewer access.
Fresno County permit timelines run 6-10 weeks if plans are clean. Budget that into your construction timeline because lenders won't fund draws until permits are pulled and inspections scheduled.
Most lenders require a licensed contractor with liability insurance. Owner-builder loans exist but add 1-2% to your rate and need proof you've managed construction before.
Lenders release funds in stages after inspecting completed work — foundation, framing, drywall, final. You pay interest only on drawn amounts until the house is done.
You cover overruns out of pocket or stop work. Lenders won't increase loan amounts once construction starts without a full reapproval at higher rates.
Some lenders include land purchase in the construction loan. Others require you to own it outright or secure it with a bridge loan first.
Single-close loans let you lock upfront. Two-loan structures make you refinance at current rates when the build finishes, risking higher payments if rates climb.