Loading
Construction Loans in Chowchilla
Chowchilla's land availability makes new construction a real option here. We're seeing builders and self-contractors tap construction financing for custom builds in Madera County.
These loans fund your project in stages as work progresses. You pay interest only during construction, then convert to a permanent mortgage when the house is done.
Most borrowers use construction-to-permanent loans to avoid closing twice. Single-close loans lock your rate upfront, protecting you if rates climb during the 12-month build.
Lenders want 680+ credit and 20% down minimum for construction loans. Some require 25% down if you're acting as your own general contractor.
You'll need detailed building plans and a licensed contractor's bid. The lender orders an appraisal based on completed value, not current land worth.
Expect to show 6-12 months reserves after closing. Lenders view construction loans as higher risk since there's no finished collateral yet.
Not every lender does construction financing. We work with regional banks and specialty construction lenders who understand rural Madera County projects.
Local credit unions sometimes offer better construction terms than national banks. They're more comfortable with Chowchilla land values and contractor networks.
Shopping matters here more than any loan type. Rates, draw schedules, and conversion terms vary wildly between lenders.
Most construction deals die because borrowers underestimate costs. Build in a 15% contingency buffer or you'll scramble for gap financing mid-project.
The contractor you choose affects approval odds. Lenders check licensing, insurance, and track record before funding your first draw.
Self-contractor loans exist but carry higher rates and down payments. Unless you've built houses before, use a licensed GC to keep lender confidence high.
Bridge loans can fund land purchase while you arrange construction financing. Hard money works if your credit doesn't hit 680 but costs 3-4 points more.
Once built, you'll refinance into conventional or jumbo depending on final value. Plan that exit strategy before breaking ground.
Some borrowers buy existing and renovate instead. Renovation loans like FHA 203k or conventional HomeStyle avoid construction loan complexity for major rehabs.
Chowchilla permitting runs through Madera County. Build timelines here depend on inspector availability and seasonal weather delays.
Well and septic requirements add costs if you're building outside city limits. Factor these into your construction budget early.
Agricultural zoning covers much of the area. Confirm residential build approval before buying land or starting loan apps.
Plan 45-60 days from application to first draw funding. Lenders need time to review plans, verify contractors, and order appraisals based on completed value.
You'll need additional funds or a change order approved by your lender. This is why 15% contingency matters - cost overruns kill more projects than any other factor.
Yes, but renovation loans often work better for existing homes. Construction loans shine for ground-up builds or complete tear-down rebuilds.
Every construction loan needs an appraisal based on completed value with plans. The appraiser estimates what the finished home will be worth, not current land value.
Most lenders want 680 minimum. Some go to 660 with 25% down and strong reserves, but expect higher rates below 680.
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.