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Taft sits in western Kern County, where land is more accessible than in coastal California. That makes building new a real option here — not just a fallback.
Construction loans cover building costs during the build phase. Then they convert to a permanent mortgage when your home is complete.
680 Typical
Min Credit Score
20% Typical
Down Payment
Required
Builder Approval
12–18 Month Build
Loan Term
Interest-Only Draws
During Build
Construction Loans in Taft
Most lenders want a 680 credit score minimum for construction loans. Some go lower, but expect tighter terms and higher rates below that threshold.
You typically need 20% down. Lenders see construction as higher risk — an unbuilt home has no collateral yet.
Local decision guide
Use this guide to connect construction loans eligibility, lender expectations, and local market factors before comparing payment options in Taft.
Taft sits in western Kern County, where land is more accessible than in coastal California. That makes building new a real option here — not just a fallback.
Construction loans cover building costs during the build phase. Then they convert to a permanent mortgage when your home is complete.
Most lenders want a 680 credit score minimum for construction loans. Some go lower, but expect tighter terms and higher rates below that threshold.
Not every lender does construction loans. Many banks pass entirely. Wholesale lenders we work with have programs built specifically for this.
Taft is a smaller market. That means fewer local bank options. Shopping across 200+ wholesale lenders matters more here than in a major metro.
The biggest mistake I see: borrowers pick a builder before locking a lender. Your lender has to approve your builder. Start with financing first.
Draw schedules trip people up. The lender releases funds in stages as construction hits milestones — not all at once. Plan your builder payments around that.
A hard money loan builds faster but costs more. Rates run significantly higher and terms are short. It works for investors — not for primary home builds.
Bridge loans solve a timing gap but don't fund construction directly. A true construction-to-perm loan is the cleaner path for most Taft buyers building new.
Kern County permitting timelines affect your loan. Construction loans have draw schedules tied to milestones. Delays cost you interest with no progress.
Oil industry ties mean Taft borrowers sometimes have variable income. Lenders will scrutinize two years of earnings carefully if you work in the oilfield sector.
You draw funds in stages as building hits milestones. At completion, the loan converts to a standard mortgage.
Yes. Owned land can often count toward your equity requirement. Tell your lender upfront — it changes the loan structure.
Most lenders require a 680 minimum. Higher scores get better rates. Rates vary by borrower profile and market conditions.
Yes. Lenders require a licensed, insured general contractor. Owner-builder loans exist but are rare and harder to qualify for.
It combines the construction and permanent loan into one closing. You avoid a second round of closing costs at completion.
Cost overruns come out of your pocket — lenders won't increase the loan mid-build. Always budget a 10-15% contingency.