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Construction Loans in Manhattan Beach
Manhattan Beach lot values push most construction projects into jumbo territory. A tear-down on the sand section can run $4-8M before you pour concrete.
Most builders here work with 12-18 month timelines due to coastal commission approvals and city permitting. Your construction loan needs to account for that extended schedule.
Lenders want 20-25% down on the total project cost — land plus construction. If you own the lot free and clear, you can use equity as your down payment.
Credit requirements start at 680, but competitive rates need 720+. Lenders verify your income covers both the construction loan and projected permanent mortgage payment.
Not every lender does construction loans, and fewer handle jumbo construction in coastal zones. We work with 15-20 lenders who actively fund Manhattan Beach projects.
Portfolio lenders often beat bank rates on beach construction because they understand the market. Some cap loan amounts at $3M, others go to $15M+ for the right borrower.
Get your builder and plans locked before you shop lenders. Vague cost estimates kill construction loan approvals faster than credit issues.
One-time close construction loans convert automatically to permanent financing. Two-time close means refinancing after build — cheaper upfront but you requalify later and pay closing costs twice.
Bridge loans work if you need to buy a teardown before selling your current home. Hard money covers gap financing when construction hits delays.
Once built, most borrowers refinance into conventional or jumbo permanent loans. Planning that exit strategy matters as much as the construction financing.
Manhattan Beach building codes are stricter than surrounding cities. Budget extra for coastal setback requirements and view ordinance compliance.
Lenders factor in resale risk for ultra-custom builds. A $10M modern fortress might appraise for $8M if comparable sales don't support it. Keep design choices marketable.
Lenders release funds in stages as work completes — foundation, framing, mechanical, finishes. Each draw requires an inspection before release, typically 3-7 days processing.
Some lenders allow owner-builders with construction experience, but most require licensed GCs with track records. Expect higher rates and down payments if you self-build.
You pay overruns out of pocket or secure gap financing. Lenders fund only the approved amount. Build a 10-15% contingency into your initial budget.
Plan 45-60 days from application to funding. Detailed plans, builder vetting, and lot appraisals take time. Start the process before you need money.
Most construction loans are interest-only on funds drawn. You pay interest monthly as money gets released, not on the full loan amount upfront.
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.