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Construction Loans in Lakewood
Lakewood's post-war tract homes are aging fast. Many borrowers now tear down and rebuild rather than renovate these 70-year-old structures.
Construction loans here fund ground-up builds and major gut rehabs. They convert to permanent mortgages once the city signs off on final inspection.
Most lenders want 20-25% down and detailed contractor bids. Without those, your file sits idle while other projects break ground.
You need 680+ credit and cash reserves covering 6 months of payments. Lenders fund in draws as work completes, not all at once.
Self-employed borrowers provide two years of tax returns. W-2 earners need 30 days of paystubs and two years of employment history.
The builder must be licensed and bonded. No handshake deals with unlicensed contractors — lenders verify this before funding.
Regional banks dominate construction lending in Los Angeles County. National lenders often avoid the complexity and inspection requirements.
Each draw inspection costs $200-400 and happens at foundation, framing, and completion stages. These fees come from your pocket, not the loan.
Interest-only payments apply during construction, typically 12-18 months. The permanent loan kicks in when you get the certificate of occupancy.
Most borrowers underestimate timeline risk. Lakewood permitting adds 2-3 months before you break ground, pushing out your first draw.
I see deals die when contractors submit vague scope-of-work documents. Lenders need line-item budgets with material costs broken out separately.
Construction-to-perm loans beat separate financing. You close once, lock your rate upfront, and avoid double sets of closing costs.
Hard money loans fund faster but charge 9-12% rates. They work for quick renovations, not 12-month ground-up builds where interest compounds.
Bridge loans help when you own land free and clear. But if you're buying the lot simultaneously, construction-to-perm handles both transactions.
Conventional loans can't fund construction phases. You'd need temporary financing, then refinance into permanent — doubling your costs and hassle.
Lakewood's R-1 zoning caps most lots at single-family homes. Verify setback requirements before finalizing plans — some streets restrict buildable square footage.
The city requires soil testing on many parcels. Budget $1,500-3,000 for this before lenders approve your construction budget.
Lakewood Municipal Airport flight paths affect northeast neighborhoods. Lenders flag these for appraisal considerations on high-value builds.
Expect 45-60 days from application to funding. Add another 60-90 days for city permits before breaking ground.
Some lenders allow owner-builders with construction experience and proper licensing. Most require professional licensed contractors with bonding.
You fund overruns out of pocket. Lenders won't increase loan amounts mid-construction without full re-underwriting and appraisal.
You pay interest-only on funds drawn, not the full loan amount. Permanent principal-and-interest payments start after completion.
Yes, if debt-to-income ratios allow carrying both payments temporarily. Many borrowers sell their existing home to fund the down payment.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.