Question 1

Can I get a construction loan on agricultural land in Merced County?

Accepted Answer

It depends on the zoning and the lender. Some portfolio lenders will do it, but many conventional programs won't touch ag-zoned land.

Question 2

What credit score do I need for a construction loan in Los Banos?

Accepted Answer

Most lenders want at least 680. Some programs require 700 or higher, especially on rural or semi-rural lots.

Question 3

Do I need to own the land before applying?

Accepted Answer

Not always. Some lenders allow land acquisition and construction to be bundled into one loan at closing.

Question 4

How does a construction-to-permanent loan work?

Accepted Answer

You draw funds during the build and pay interest only. At completion, the loan converts to a standard mortgage automatically.

Question 5

What's the minimum down payment for a construction loan?

Accepted Answer

Expect 20% down as the floor. Some lenders require more depending on the lot type and borrower profile.

Question 6

Can I act as my own general contractor?

Accepted Answer

A few lenders allow owner-builder loans, but most require a licensed contractor. Owner-builder programs are harder to find and stricter to qualify for.

Construction Loans in Los Banos, CA — Build Instead of Buy