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Construction Loans in Marina
Marina sits on prime Monterey County land where buildable lots still exist. Most construction here runs coastal or energy-efficient spec, not cookie-cutter tract.
Lenders price Marina differently than inland Monterey County. Salt air, seismic zones, and Coastal Commission delays all factor into construction risk.
Ground-up builds here take 12-18 months minimum, not 8 like Central Valley. Your construction loan needs to account for longer draw schedules.
You need 20-25% down for most construction loans. Lenders hold that cash in reserve until the project closes, so liquidity matters more than income here.
Expect 680+ credit for standard programs, 720+ for coastal builds. Builder track record counts—first-time owner-builders face tougher underwriting.
Documented construction experience or a licensed GC on contract improves approval odds. Lenders want proof someone knows how to finish what they start.
Only about 30 of our 200+ wholesale lenders touch construction in Monterey County. Coastal exposure and California building codes narrow the field fast.
Regional banks often beat national lenders on construction here—they know Marina's permit timelines and contractor networks. Rate differences hit 50-75 basis points.
Most lenders cap construction at 75% loan-to-cost. On a $900K build, you're funding $225K cash plus overruns before any loan dollars hit the account.
Construction-to-perm loans close once and convert automatically. Two separate loans cost you double closing fees and two rate locks—avoid that structure in rising rate environments.
Marina projects stall on permits more than funding. City planning runs 4-6 months minimum, Coastal Commission adds another 3-8 if you're near the dunes.
Lenders require a quantity surveyor or third-party inspector for draw approvals. That inspector bills $400-600 per site visit—budget it into your construction costs upfront.
Your interest reserve calculation assumes an 18-month build. If you think you'll finish in 12, you still pay reserve for 18. Lenders don't refund unused reserves.
Spec builders in Marina face stricter debt-to-income limits than owner-occupants. Lenders see speculative coastal construction as higher default risk, even with pre-sales.
Bridge loans cover land purchase before construction starts. Most borrowers need both—bridge to buy the lot, construction to build on it.
Hard money works if your credit sits below 680 or timeline pressure exists. Rates run 9-12% but close in 10 days, not 45.
Jumbo construction loans kick in above $726,200 in Monterey County. Same structure as conventional construction, just higher loan limits and stricter reserves.
Conventional construction-to-perm converts to a standard 30-year fixed at completion. Jumbo stays jumbo, which matters when the conversion happens in a high-rate environment.
Marina enforces strict energy codes beyond Title 24. Solar, greywater systems, and advanced HVAC all add 8-12% to construction budgets that lenders underwrite.
Former Fort Ord land comes with environmental review requirements. Lenders won't fund until Phase I/II assessments clear, which delays your first draw 60-90 days.
Coastal wind and sand infiltration demand upgraded materials. Standard interior finishes don't pass here—budget Hardie over stucco, marine-grade windows over vinyl.
Water allocation limits exist in parts of Marina. Confirm your lot has a water meter allocation before you lock a construction loan—lenders require proof at approval.
45-60 days from application to clear-to-close. Add another 30-60 days if Fort Ord environmental reviews apply to your lot.
Some lenders allow owner-builders with documented experience. Most require a licensed California GC, especially on coastal builds over $500K.
You fund cost overruns out of pocket before the next draw releases. Lenders won't increase loan amounts mid-construction without a full re-underwrite.
No. Construction loans don't carry PMI since they're not permanent financing yet. PMI applies only after conversion to the permanent mortgage if you're below 20% equity.
Draws release based on completed phases, not calendar dates. If permits stall your foundation pour, your next draw waits too—plan cash flow around that reality.
Most construction loans float during the build, then lock at conversion. Extended rate locks cost 0.25-0.50% and rarely cover full 18-month timelines.
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.