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El Centro sits in Imperial County, where the median household income of $56,393 stretches further than coastal markets. New construction projects are reshaping the area, drawing buyers who want to customize their homes from the ground up rather than compete...
Construction loans work differently than traditional mortgages. You borrow in stages as the build progresses, paying interest only on the amount drawn. Once the home is complete, the loan converts to a standard mortgage.
700 FICO
Minimum Credit Score
20%
Typical Down Payment
45–60 days
Closing Timeline
$56,393
County Median Income
Construction Loans in El Centro
Construction loans require stronger credit than traditional mortgages—typically 700+ FICO. Lenders want proof you can handle the dual-payment phase: interest-only during construction, then the full principal-and-interest payment after conversion.
Your income needs to support both the construction-phase interest payment and the projected permanent mortgage payment. At Imperial County's median household income of $56,393, a construction project in the $300,000 to $400,000 range is realistic.
Local decision guide
Use this guide to connect construction loans eligibility, lender expectations, and local market factors before comparing payment options in El Centro.
El Centro sits in Imperial County, where the median household income of $56,393 stretches further than coastal markets. New construction projects are reshaping the area, drawing buyers who want to customize their homes from the ground up rather than compete...
Construction loans work differently than traditional mortgages. You borrow in stages as the build progresses, paying interest only on the amount drawn. Once the home is complete, the loan converts to a standard mortgage.
Construction loans require stronger credit than traditional mortgages—typically 700+ FICO. Lenders want proof you can handle the dual-payment phase: interest-only during construction, then the full principal-and-interest payment after conversion.
Construction lending in California is tighter than purchase or refinance lending. Most retail banks avoid it; the work falls to specialized construction lenders and some credit unions.
Underwriting takes longer because lenders inspect the property at each draw stage. Closing timelines run 45 to 60 days, not the 21 days you'd see on a standard purchase.
Construction loans make sense in El Centro when you've found a builder you trust and the home you want doesn't exist yet. If you're competing for resale homes in a tight market, construction lets you step out of that race.
The real advantage emerges when Imperial County's median household income of $56,393 means you can't afford the premium resale homes command.
Construction loans versus a traditional purchase mortgage: the purchase mortgage is simpler and faster. You close once, make one payment, and you're done.
FHA loans on a new construction home are faster than a construction loan but require the home to be complete before you close. If you want to oversee the build and make changes mid-project, construction financing is the only path.
Imperial County's school districts are investing in new facilities and programs. If you're building in an area near planned school improvements, your home's long-term value benefits.
The Autism Awareness F.A.I.R. event at Eager Park reflects a community focused on family services and inclusion. New construction in El Centro often targets families who want modern homes with good schools nearby.
Construction loans typically require 20% down. Some lenders go as low as 15% with strong credit and a solid builder, but 20% is the standard. The down payment is held in escrow and released as construction milestones are met.
Yes — you pay interest only on the amount the lender has drawn. If $100,000 has been drawn, you pay interest on that amount. Once construction finishes and the loan converts, you pay principal and interest like a normal mortgage.
Most lenders require 700 or higher. Construction lending is riskier than purchase lending, so lenders tighten credit standards. If you're below 700, talk to a broker about builder-specific programs or waiting to improve your score.
Expect 45 to 60 days from application to closing. Construction loans require more underwriting because lenders verify the builder, review construction plans, and set up escrow accounts.
No — you're committed to the builder and the loan. If you walk away, you lose your down payment and may face legal claims from the builder. Make sure you trust the builder and the design before you sign the construction loan.