Question 1

How does a construction loan work in Costa Mesa?

Accepted Answer

The lender funds your build in draws as each phase completes. At the end, the loan converts to a permanent mortgage.

Question 2

Do I need to own the land before applying?

Accepted Answer

Most lenders require you to own the lot or close on it simultaneously. Land equity can count toward your down payment.

Question 3

What credit score do I need for a construction loan?

Accepted Answer

Expect a 680 minimum. Higher scores get better rates and easier approvals. Rates vary by borrower profile and market conditions.

Question 4

Can I act as my own general contractor?

Accepted Answer

Most lenders won't allow it. They require a licensed, insured GC with a verifiable track record on comparable projects.

Question 5

How long does a construction loan last?

Accepted Answer

Typical terms are 12 to 18 months. If your build runs long, you may need an extension — plan for it early.

Question 6

Are construction loan rates higher than regular mortgage rates?

Accepted Answer

Yes. Construction loans carry more risk, so rates run higher. The permanent loan you convert to may be more competitive. Rates vary by borrower profile and market conditions.

Construction Loans in Costa Mesa: Build What the Market Won't Sell You