Question 1

Can I use a construction loan on agricultural land in Dos Palos?

Accepted Answer

It depends on the land's zoning and intended use. Some lenders will finance residential builds on ag-adjacent parcels — others won't.

Question 2

What credit score do I need for a construction loan?

Accepted Answer

Most lenders want 680 or higher. Stronger credit also gets you better rate pricing. Rates vary by borrower profile and market conditions.

Question 3

How do construction loan draws work?

Accepted Answer

The lender releases funds in stages tied to completed work. An inspector verifies each phase before the next draw is released.

Question 4

Do I need a down payment for a construction loan?

Accepted Answer

Yes. Most programs require 20% down, though some allow less with stronger credit. Owned land equity can sometimes substitute.

Question 5

What is a construction-to-permanent loan?

Accepted Answer

It's a single loan that covers the build phase, then converts to a regular mortgage. You avoid a second closing and a second set of fees.

Question 6

How long does a construction loan last in California?

Accepted Answer

Most construction loans run 12 months. Extensions are possible but may cost fees. Build timelines in Merced County vary by permit speed.

Construction Loans in Dos Palos, CA — Build What You Can't Buy