Loading
Loading
Construction Loans in Mill Valley
What's the difference between a construction loan and a regular mortgage?
A construction loan funds in draws as work progresses. A standard mortgage funds the full amount at closing. Construction loans convert to permanent financing once the home is complete.
01
Mill Valley's real estate market centers on custom builds and significant renovations. A privately owned mountaintop opening to the public signals ongoing community investment in the area.
Construction loans fund your build in draws as work progresses. Once complete, the loan converts to permanent financing, so you're not managing two separate mortgages.
680
Minimum Credit Score
20–25% of project cost
Typical Down Payment
12–24 months
Typical Loan Duration
$1,249,125
2026 Conforming Limit
02
Construction loans require strong credit—typically 680 or higher—and proof you can cover the gap between draws. Lenders want to see solid reserves and a realistic budget for the entire project.
Marin County's median household income of $142,785 supports purchases well into the $800,000 to $1,000,000 range. Down payments usually run 20% to 25% on the total project cost.
Local decision guide
Use this guide to connect construction loans eligibility, lender expectations, and local market factors before comparing payment options in Mill Valley.
Mill Valley's real estate market centers on custom builds and significant renovations. A privately owned mountaintop opening to the public signals ongoing community investment in the area.
Construction loans fund your build in draws as work progresses. Once complete, the loan converts to permanent financing, so you're not managing two separate mortgages.
Construction loans require strong credit—typically 680 or higher—and proof you can cover the gap between draws. Lenders want to see solid reserves and a realistic budget for the entire project.
Rate check
Tell us the price range, down payment and credit range you are working with. We compare every lender we work with and show you the options side by side.
03
Construction lending in California is more specialized than standard mortgages. Lenders focus heavily on the builder's track record, detailed plans, and a solid cost estimate before committing.
SRK CAPITAL shops dozens of wholesale partners who specialize in construction. Each lender has different draw schedules and inspection requirements, so finding the right fit saves time and money.
04
Construction loans make sense in Mill Valley when you've found land and a builder you trust. The monthly payment during construction is interest-only, keeping costs low while work happens.
They don't work if your timeline is tight or your budget is uncertain. Construction draws depend on inspections and progress—delays push your completion date and extend the interest-only phase.
05
A construction loan differs from a standard mortgage because it funds in stages, not all at once. You pay interest only on the amount drawn, not the full loan, until the home is finished.
A traditional purchase mortgage assumes the home exists and is ready to occupy. Construction loans require active project management and lender inspections at each phase.
06
A Marin tech entrepreneur is investing millions to preserve Point Reyes Station's historic character. That kind of thoughtful development appeals to builders and buyers planning long-term homes in the area.
The Marin County Fair runs each July in San Rafael, drawing families and creating a strong sense of community. Buyers building custom homes here often plan for entertaining and outdoor space.
FAQ
A construction loan funds in draws as work progresses. A standard mortgage funds the full amount at closing. Construction loans convert to permanent financing once the home is complete.
No. You pay interest only on the amount drawn so far. As the builder completes phases, draws increase and so does your interest payment. Once converted to permanent financing, you pay principal and interest.
Most construction loans last 12 to 24 months, depending on the project scope. The lender sets a completion deadline. Once the home is finished and inspected, the loan converts to a permanent mortgage.
Most lenders require 680 or higher. Some require 700 for larger or more complex projects. The builder's reputation and your down payment also influence approval.
Yes. Many lenders allow you to lock your permanent rate 90 to 120 days before completion. This protects you from rate increases during the final construction phase.
Programs for first-time buyers that allow lower down payments and more forgiving credit and income rules.
Explore refinancing options to lower your rate, tap equity, or switch loan terms.
SRK CAPITAL in Marin County
Our team of licensed mortgage brokers works Marin County every week. Tell us where you are in the process and we will map out the loan, the timeline and the money you need at closing, with no obligation.
What working with us looks like
Licensed mortgage brokers
You talk with a broker, not a call center, from the first question to closing day.
17-21 day typical close
Most purchase loans close in 17-21 days once your paperwork is in.
Every county in California
We work across the state, including Marin County, so local limits and rules are already familiar.
Financing solutions for rental properties, fix-and-flip projects, and real estate portfolios.
Mortgage programs with alternative income documentation for business owners and freelancers.
Federally insured or guaranteed programs (FHA, VA, USDA) that let lenders accept lower credit scores and smaller down payments.
Traditional mortgage options meeting standard lending guidelines with various term structures.
Alternative lending programs for borrowers who need flexible documentation or unique loan structures.
This page is for educational purposes only and does not constitute financial, legal, or tax advice. Mortgage rates, terms, and program availability can change and vary by borrower and property. Consult a licensed mortgage professional for guidance on your scenario.