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Sand City sits on a small but prime coastal strip in Monterey County. Buildable land here is scarce, which makes construction financing a serious tool for buyers who want to own.
New construction lets you control the build on a lot you secure now. That matters more in tight coastal markets than anywhere else.
680+
Min Credit Score
20–25%
Down Payment
9–12 Months
Typical Build Term
200+ Wholesale
Lender Network
Interest Only
During Build
Construction Loans in Sand City
Most lenders want a 680 credit score minimum for construction loans. Some go lower, but you'll pay for it in rate and reserve requirements.
Expect a 20-25% down payment. Lenders see construction as riskier than a finished home. Strong reserves help offset that risk.
Local decision guide
Use this guide to connect construction loans eligibility, lender expectations, and local market factors before comparing payment options in Sand City.
Sand City sits on a small but prime coastal strip in Monterey County. Buildable land here is scarce, which makes construction financing a serious tool for buyers who want to own.
New construction lets you control the build on a lot you secure now. That matters more in tight coastal markets than anywhere else.
Most lenders want a 680 credit score minimum for construction loans. Some go lower, but you'll pay for it in rate and reserve requirements.
Few retail banks actively do construction loans in coastal California. Most have pulled back. Wholesale lenders and portfolio lenders fill that gap.
At SRK CAPITAL, we work with 200+ wholesale lenders. We find the ones still actively writing construction deals in Monterey County.
The draw schedule is where most borrowers get tripped up. Funds release in phases as construction milestones are hit — not all at once.
Your contractor needs to be licensed and approved by the lender before closing. Get that sorted early. Delays there kill timelines.
A one-time close construction loan wraps build and permanent financing into one transaction. Two-close means you close twice and pay fees twice.
Bridge loans and hard money are faster but cost more. Construction loans are structured for the full build cycle — that's the right tool for new builds.
Sand City is a small incorporated city with its own planning and permitting process. Budget extra time for local approvals before your loan closes.
Coastal Commission rules apply to properties near the shoreline. Your lender will want to see permits cleared before funds flow.
Most lenders want 680 or higher. Below that, your options shrink and your rate goes up.
No. You make interest-only payments on funds drawn so far. Full payments start after the loan converts.
Yes, for major renovations. Minor repairs don't qualify — lenders want to see significant structural or addition work.
Build phases typically run 9-12 months. After that, the loan converts to a permanent 15 or 30-year mortgage.
Yes. Your contractor must be licensed and approved before closing. Submit that paperwork early in the process.
Fewer lenders offer them here. That's why broker access to a wide lender network matters for Sand City borrowers.