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Madera County has land. That's the starting point for most construction loan conversations here.
Building new often makes sense when existing inventory is tight. A construction loan funds the build, then converts to a permanent mortgage at completion.
680 (typical)
Min Credit Score
20% typical
Down Payment
Up to 12 months
Build Phase Term
Licensed GC
Contractor Required
Interest-only draws
During Construction
Most lenders want a 680 credit score minimum for construction loans. Some go lower, but you'll pay for it in rate.
Expect to put 20% down on a construction loan. Lenders see more risk in unbuilt collateral — that's why reserves matter too.
Construction loans are harder to place than purchase loans. Fewer lenders do them, and guidelines vary a lot across the ones that do.
At SRK CAPITAL, we work with 200+ wholesale lenders. That range matters here — one lender's construction program could save you a full point over another's.
The biggest mistake I see: borrowers pick their builder before locking their financing. Get the loan first. Builders don't wait, but your approval timeline might.
Construction draws — the staged payments to your builder — get inspected before each release. Understand that process before you break ground.
A bridge loan gets you short-term cash but doesn't fund a build. Hard money moves fast but costs more. Construction loans are purpose-built for this.
One-time-close construction loans lock your permanent rate upfront. Two-time-close gives more flexibility but means two sets of closing costs.
Madera County includes rural and semi-rural parcels. Lenders treat those differently — raw land with no utilities needs extra scrutiny.
USDA construction loans are worth exploring in Madera County's eligible rural zones. They allow 0% down if the site and borrower qualify.
Most construction phases run 12 months. Once the build is done, the loan converts to a 30-year mortgage.
No. You pay interest only on funds drawn so far. Full payments start after conversion to the permanent loan.
Possibly. Parts of Madera County qualify for USDA rural designation. The site and your income must both meet eligibility requirements.
Most lenders require 680 or higher. Some programs go to 640 but expect tighter terms and higher rates. Rates vary by borrower profile and market conditions.
Yes. Almost every lender requires a licensed general contractor. Owner-builder programs exist but are rare and harder to qualify for.
A draw is a staged payment to your builder. The lender sends an inspector before releasing each draw to confirm work is complete.
Construction Loans in Madera