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Construction Loans in Belvedere
Belvedere sits on one of the most exclusive peninsulas in the Bay Area. Most construction here involves tearing down aging homes to build modern estates that maximize views.
Lot values drive pricing. A teardown on a ridge lot can cost $3M before you pour the first foundation. Construction loans need to cover both acquisition and build-out costs.
Lenders view Belvedere projects differently than mainland Marin. The limited inventory and waterfront locations create strong resale confidence, which loosens underwriting.
You need 20-30% down on the total project cost—land plus construction. If you already own the lot, your existing equity counts toward that requirement.
Lenders want to see 680+ credit and proof you can cover 6-12 months of construction loan payments from reserves. No construction income counts until the home is finished.
Most Belvedere projects require detailed plans, contractor bids, and appraisals showing as-completed value. Lenders won't fund without a clear scope and timeline.
Debt-to-income limits apply to the future permanent mortgage, not just the construction phase. Plan for what your payment will be after conversion.
Regional banks and credit unions handle most Belvedere construction loans. They understand Bay Area building costs and won't balk at $2M+ construction budgets.
National lenders often struggle with projects over $1.5M. Their underwriters see the numbers and assume overbuilding, even though that's standard here.
Construction-to-permanent loans lock your rate upfront. One-time close products save you from refinancing fees but reduce flexibility if rates drop during the build.
Portfolio lenders give you the most options for complex projects—elevator installs, seawalls, hillside foundations. They price deals individually instead of following agency guidelines.
I route most Belvedere construction deals to portfolio lenders. The projects are too custom and too expensive for conventional products, and you need an underwriter who gets why foundation work costs $400K here.
Timing matters. If your architect needs four more months to finalize plans, wait. Lenders won't hold a construction loan approval without complete drawings and permits in process.
Budget 10-15% over your contractor's estimate for unknowns. Belvedere lots often reveal drainage issues or soil problems once excavation starts, and lenders fund based on the original scope.
The conversion to permanent financing is where deals fall apart. Make sure your construction loan converts to a jumbo product that fits your income, not just a conforming loan that caps at $1.15M.
Bridge loans work if you're selling your current home to fund construction. They cost more but give you 12 months to close the sale while you start building.
Hard money makes sense for pure teardowns where you own the lot free and clear. You can fund demolition and foundation work fast, then refinance into a construction loan once plans are final.
Jumbo loans only apply after construction finishes. If you're buying a completed spec home in Belvedere, skip construction financing and go straight to a jumbo purchase loan.
Conventional loans cap at $1.15M in Marin. That won't cover land acquisition for most Belvedere lots, much less the build cost.
Belvedere has strict design review requirements. Your plans will take longer to approve than in mainland Marin, and lenders won't fund until you have city sign-off.
Waterfront properties need coastal engineering studies. Budget $50K+ for reports on erosion, sea level rise, and seawall requirements before a lender will touch the deal.
Limited contractor availability extends timelines. The best builders book out 12-18 months in advance, and lenders want to see a committed contractor before approving your loan.
Property taxes reassess when construction completes. Your Prop 13 base resets to the new market value, not just the cost of improvements.
Yes. Your equity in the lot counts toward the down payment requirement. Lenders will appraise the land value and factor that into the loan-to-cost calculation.
You pay the overage out of pocket. Construction loans fund based on the approved budget and won't advance extra money mid-project unless you formally increase the loan amount.
Lenders release funds in stages tied to completion milestones—foundation, framing, mechanical rough-in, final inspection. An inspector verifies work before each draw.
Yes, on the outstanding balance. You make interest-only payments monthly as the lender disburses funds to your contractor.
Only with a construction-to-permanent loan. These products lock your rate upfront but may cost slightly more than a standalone construction loan.
You can refinance the permanent mortgage after conversion if rates improve. Construction-to-perm loans lock convenience, not perfection.
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.