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Commerce sits in Los Angeles County, where the median household income of $87,760 supports active real estate development. Construction loans finance custom builds from foundation to move-in, letting you shape the home exactly as you want it.
New construction in the county typically takes 12 to 18 months from breaking ground to closing. During that time, you draw funds in stages as work progresses, paying interest only on what you've borrowed so far.
680 FICO
Minimum Credit Score
20–25%
Typical Down Payment
12–18 months
Construction Timeline
Interest-only during build
Payment Type
Construction Loans in Commerce
Construction loans require a solid credit foundation — typically 680 FICO or higher — and proof that you can carry the project. Lenders want to see 20% to 25% down on the final home value, plus reserves to cover unexpected costs during the build.
Los Angeles County's median household income of $87,760 translates to roughly $200,000 to $250,000 in annual borrowing power for construction. Your builder's experience and detailed plans matter as much as your credit score when lenders evaluate the risk.
Local decision guide
Use this guide to connect construction loans eligibility, lender expectations, and local market factors before comparing payment options in Commerce.
Commerce sits in Los Angeles County, where the median household income of $87,760 supports active real estate development. Construction loans finance custom builds from foundation to move-in, letting you shape the home exactly as you want it.
New construction in the county typically takes 12 to 18 months from breaking ground to closing. During that time, you draw funds in stages as work progresses, paying interest only on what you've borrowed so far.
Construction loans require a solid credit foundation — typically 680 FICO or higher — and proof that you can carry the project. Lenders want to see 20% to 25% down on the final home value, plus reserves to cover unexpected costs during the build.
Construction lending in California is more selective than purchase or refinance lending. Most lenders require the builder to be established with a solid history of completed projects in the area.
Loan terms typically run 12 to 24 months during construction, with interest-only payments. At completion, the loan converts to a standard mortgage — either fixed or adjustable — based on your preference and the lender's offerings.
Construction loans make sense in Commerce when you've found land and a builder you trust, and when you have the reserves to weather delays. If you're buying an existing home in the next 90 days, a standard purchase loan is faster and simpler.
The real advantage of construction financing is control. You pick finishes, materials, and layout — something a resale home never offers. That flexibility costs time and requires patience, but for the right buyer, it's worth the extra steps.
Construction loans differ from purchase loans in timing and payment structure. A purchase loan closes in 30 to 45 days and you move in immediately. Construction financing takes a year or more and you pay interest-only until the home is finished.
Jumbo construction loans above the conforming limit of $1,249,125 carry stricter reserves and builder requirements. For homes within that limit, conventional construction financing is more accessible and typically faster to underwrite.
Commerce is an industrial hub in Los Angeles County with strong infrastructure and proximity to major employment centers. New construction here appeals to buyers who want modern homes in an established, accessible location.
The area's logistics and manufacturing base means steady job growth and reliable demand for housing. Building new in Commerce positions you in a market with long-term economic fundamentals supporting home values.
Construction loans typically require 20% to 25% down on the final home value. Lenders also want to see additional reserves — usually 10% to 15% of the loan amount — to cover unexpected costs during the build.
Yes. Most lenders offer rate locks of 60 to 120 days during the construction phase. Once the home is complete, the loan converts to a permanent mortgage with a new rate based on market conditions at that time.
Your interest-only payments continue until the home is finished and the loan converts. If delays push past your rate lock, you may face a higher rate at conversion. Detailed project timelines and builder experience help minimize this risk.
Yes. Lenders require the builder to have a proven track record of completed projects. New or inexperienced builders may not qualify, or may require additional reserves and oversight from the lender.
Purchase loans close in 30 to 45 days and you move in immediately. Construction loans take 12 to 18 months, with interest-only payments during the build, then convert to a standard mortgage when the home is complete.