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Tehachapi sits at elevation with room to build. Lots are available, land costs are lower than coastal California, and custom homes are a real option here.
Most buyers in Tehachapi aren't buying existing homes — they're building them. Construction financing is a core tool in this market, not a niche product.
680 typical
Min Credit Score
20-25%
Down Payment
9-12 months
Build Period
One-time or two-time
Closes
Construction Loans in Tehachapi
Most lenders want a 680 credit score minimum for construction loans. Some go lower, but you'll pay for it in rate and reserve requirements.
Expect a 20-25% down payment. Lenders want skin in the game on a project that doesn't exist yet. Strong reserves help your file significantly.
Local decision guide
Use this guide to connect construction loans eligibility, lender expectations, and local market factors before comparing payment options in Tehachapi.
Tehachapi sits at elevation with room to build. Lots are available, land costs are lower than coastal California, and custom homes are a real option here.
Most buyers in Tehachapi aren't buying existing homes — they're building them. Construction financing is a core tool in this market, not a niche product.
Most lenders want a 680 credit score minimum for construction loans. Some go lower, but you'll pay for it in rate and reserve requirements.
Big retail banks rarely do construction loans well. Most have rigid draw schedules and slow inspection timelines that stall your build.
Portfolio lenders and regional banks move faster. As a broker with 200+ wholesale lenders, we find the ones who actually close construction deals in rural Kern County.
One-time close construction loans are worth asking about. You lock your permanent rate at the start and avoid a second round of closing costs.
Two-time close loans give you more flexibility if your build timeline is uncertain. We see both structures work in Tehachapi depending on the borrower.
Hard money construction loans fund faster but cost more. Rates are higher and terms are short — best for experienced builders, not first-time owner-builders.
Bridge loans can cover land purchase while you finalize plans. Conventional construction loans are the standard for most Tehachapi borrowers building a primary home.
Tehachapi has wind, elevation, and seismic considerations. Your builder and lender both need to understand local building codes for Kern County.
Rural property classifications can affect which lenders will touch the deal. Acreage, well, and septic situations add underwriting complexity — plan for it.
Some lenders allow owner-builder loans, but most require a licensed GC. Options exist — they're just limited and come with tighter underwriting.
Funds release in stages as work is completed. An inspector verifies each phase before the lender releases the next draw.
One-time close locks your permanent rate at start and closes once. Two-time close means separate loans — one for construction, one for the finished home.
Yes, many construction loans include land acquisition. If you already own the lot, that equity can count toward your down payment.
Most construction periods run 9-12 months. Extensions are possible but cost money — choose a builder with a realistic timeline.
Yes. Construction loans carry more risk, so rates run higher during the build phase. Rates vary by borrower profile and market conditions.