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Larkspur's hillside lots and teardown opportunities make construction loans essential for serious buyers. Limited inventory pushes many toward building custom rather than settling for existing stock.
Most Larkspur construction projects involve hillside builds or major renovations on older properties. Your financing needs to account for Marin's strict building codes and longer permit timelines.
Construction Loans in Larkspur
You need 680+ credit and 20-25% down for most construction loans. Lenders want to see detailed plans, contractor bids, and proof you can handle cost overruns.
Expect income verification stricter than purchase loans. Construction lenders look at your total financial picture—existing mortgage, cash reserves, and whether your income supports carrying two properties during the build.
Local decision guide
Use this guide to connect construction loans eligibility, lender expectations, and local market factors before comparing payment options in Larkspur.
Larkspur's hillside lots and teardown opportunities make construction loans essential for serious buyers. Limited inventory pushes many toward building custom rather than settling for existing stock.
Most Larkspur construction projects involve hillside builds or major renovations on older properties. Your financing needs to account for Marin's strict building codes and longer permit timelines.
You need 680+ credit and 20-25% down for most construction loans. Lenders want to see detailed plans, contractor bids, and proof you can handle cost overruns.
Local credit unions know Marin construction costs but cap at $2 million. Regional banks go higher but demand perfect credit and extensive documentation.
We access 200+ wholesale lenders including construction specialists who understand Larkspur's challenging terrain. Some offer single-close loans that convert automatically to permanent financing when the build completes.
Construction-to-permanent loans save you from refinancing twice. You lock your rate upfront, so if rates rise during your 12-month build, you're protected.
Larkspur builds cost more than borrowers expect. Budget 15-20% padding for site work on hillside lots—excavation, retaining walls, and drainage eat cash fast.
Your contractor choice affects approval more than most borrowers realize. Lenders red-flag contractors without Marin project history or thin insurance coverage. Bring us contractor references early so we can vet them before you commit.
Time your loan application to your permits. Starting the financing process before permits are in hand wastes everyone's time and can cost you rate locks.
Bridge loans work if you need to buy land before construction financing kicks in. We layer them so you're not stuck with short-term debt eating your budget.
Hard money makes sense for quick land purchases or if your credit sits below 680. Expect 10-12% rates but you can refinance into construction terms once permits clear.
Jumbo construction loans handle Larkspur's high build costs but require 25% down minimum. If your project tops $2.5 million, we shop lenders who specialize in luxury custom builds.
Marin's design review boards add 3-6 months to timelines. Your construction loan needs buffer built in—most lenders give 12 months to complete, but Larkspur projects often need extensions.
Hillside Foundation requirements drive up costs unpredictably. Soil reports might demand deeper pilings or engineered retaining walls discovered mid-project. Lenders want 15% contingency minimums for this reason.
Fire zone designations affect insurance and sometimes lender willingness. Properties in high fire severity zones need specialized coverage locked down before loan approval.
Most lenders require 20-25% down. If your total project exceeds $2 million, expect 25% minimum and substantial reserves for cost overruns.
Yes, renovation construction loans work for gut rehabs or additions. You need detailed contractor bids and plans showing the scope of work before approval.
You cover overruns from reserves—lenders won't increase funding mid-project. Budget 15-20% contingency for hillside builds where surprises are common.
Expect 30-45 days from application to approval. You need permitted plans, contractor agreements, and detailed budgets before we can start underwriting.
You pay interest only on funds drawn during construction. Once the build completes, the loan converts to principal and interest payments like a standard mortgage.
Some lenders allow owner-builders but require construction experience and higher down payments. Most demand licensed general contractors with Marin project history.