Question 1

How does a construction loan work in Mission Viejo?

Accepted Answer

The lender releases funds in draws as construction milestones are hit. You pay interest only during the build, then convert to a permanent mortgage at completion.

Question 2

Can I use a construction loan for a remodel?

Accepted Answer

Yes. Major renovations qualify in most cases. The scope of work needs to justify the loan size, and lenders will want a licensed contractor.

Question 3

What credit score do I need for a construction loan?

Accepted Answer

Most lenders require 680 minimum. For larger builds or self-employed borrowers in Orange County, expect lenders to want 720 or higher.

Question 4

How much can I borrow for a construction loan in Orange County?

Accepted Answer

Loan amounts depend on the finished home's appraised value. High OC land and build costs often push Mission Viejo projects into jumbo territory.

Question 5

What is a one-time close construction loan?

Accepted Answer

You close once, locking your rate before the build starts. At completion, the loan automatically converts to a permanent mortgage — no second closing.

Question 6

Do I need my builder approved by the lender?

Accepted Answer

Yes. Lenders require builders to be licensed, insured, and financially vetted. Start this process early — it can delay approval if skipped.

Construction Loans in Mission Viejo, CA