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Fountain Valley is a built-out suburb. Finding raw land to build on is rare, but teardowns and lot-split opportunities do exist.
Owners who want to stay in the area often build up instead of moving. A construction loan lets you rebuild or expand without losing your ZIP code.
680+
Min Credit Score
20-25%
Typical Down Payment
Up to 12 months
Typical Build Period
One-time or Two-close
Closes
Interest-only on draws
Payments During Build
Construction Loans in Fountain Valley
Most construction lenders want a 680+ credit score. Some go lower, but expect tighter terms and higher reserves.
You'll typically need 20-25% down on the total project cost — land plus construction budget combined.
Local decision guide
Use this guide to connect construction loans eligibility, lender expectations, and local market factors before comparing payment options in Fountain Valley.
Fountain Valley is a built-out suburb. Finding raw land to build on is rare, but teardowns and lot-split opportunities do exist.
Owners who want to stay in the area often build up instead of moving. A construction loan lets you rebuild or expand without losing your ZIP code.
Most construction lenders want a 680+ credit score. Some go lower, but expect tighter terms and higher reserves.
Big retail banks have largely pulled back from construction lending. Portfolio lenders and credit unions carry most of this volume now.
We work with 200+ wholesale lenders, and only a fraction actively do construction loans. Knowing which ones are open right now saves you weeks.
The draw schedule is where deals fall apart. Your lender releases funds in stages as work is completed. Misaligned draws stall your contractor.
Get your contractor and lender aligned on the draw timeline before you close. This single step prevents most mid-build disputes.
A construction-to-permanent loan closes once. A two-close structure closes twice — higher costs, but more flexibility if plans change.
Hard money moves faster and cares less about credit. But the rates are steep. For a primary residence build, construction loans almost always win on cost.
Fountain Valley sits in the heart of Orange County. Construction costs per square foot here run high. Build budgets need to reflect that reality.
City permitting in Fountain Valley adds time. Factor at least 60-90 days for permit approval into your project timeline before breaking ground.
You draw funds in stages as construction progresses. At completion, the loan typically converts to a standard mortgage.
Yes. Teardown-rebuild is one of the most common use cases in built-out cities like Fountain Valley. Lender approval depends on the after-improved value.
Most construction lenders require 680 or higher. Scores below that limit your options and raise your rate. Rates vary by borrower profile and market conditions.
Not always. Some lenders fold the land purchase into the construction loan. Others require you to own the lot free and clear before they'll lend.
Typical construction periods run 12 months. Extensions are available but usually cost a fee — build that possibility into your budget.
Overruns are your responsibility unless you built contingency into the original loan. Most lenders won't increase the loan mid-construction.