Construction Loans in Pomona: Finance Your Build or Major Renovation

Pomona sits on the eastern edge of LA County, where land costs less than coastal markets. That spread creates opportunity for custom builds and major renovations.

Construction financing here typically runs 12-18 months from groundbreaking to completion. Your draw schedule needs to match actual build progress, not contractor promises.

Most Pomona projects fall into two categories: custom single-family builds on purchased lots and gut rehabs of older properties. The loan structure changes based on which path you take.

Regional banks and credit unions dominate construction lending in Pomona. National lenders often avoid projects under $500K or won't finance in certain zip codes.

Construction-to-permanent loans from one lender beat separate construction and takeout loans. You lock your permanent rate at closing, not 18 months later when rates might be higher.

Draw inspection requirements vary wildly between lenders. Some send inspectors for every $10K draw, others only at foundation, framing, and completion stages.

Hard money covers land purchase and initial construction when you can't qualify for traditional financing yet. Rates run 9-12%, but you refinance to conventional once the build completes.

Bridge loans work for buying a teardown property you'll rebuild. Construction loans assume you already control the land or are purchasing it as part of the financing.

Conventional loans require a finished, habitable property. Construction loans fund the building process itself, with disbursements tied to completion milestones.