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Placentia is a mature Orange County suburb. Most lots are already developed, which makes ground-up builds rare but not impossible.
Teardowns and major additions are the more common play here. A construction loan funds the build, then converts to a permanent mortgage at completion.
680+
Min Credit Score
20-25%
Typical Down Payment
12-18 Months
Build Period Allowed
Milestone-Based
Draw Structure
Interest-Only
During Construction
Construction Loans in Placentia
Construction loans are harder to qualify for than standard purchase loans. Lenders typically want a 680+ credit score and 20-25% down.
You'll need approved plans, a licensed contractor, and a detailed budget. Lenders fund the build in draws — not one lump sum.
Local decision guide
Use this guide to connect construction loans eligibility, lender expectations, and local market factors before comparing payment options in Placentia.
Placentia is a mature Orange County suburb. Most lots are already developed, which makes ground-up builds rare but not impossible.
Teardowns and major additions are the more common play here. A construction loan funds the build, then converts to a permanent mortgage at completion.
Construction loans are harder to qualify for than standard purchase loans. Lenders typically want a 680+ credit score and 20-25% down.
Most retail banks offer construction loans, but their programs are rigid. Wholesale lenders give us more flexibility on draw schedules and loan structures.
Not every lender will touch an Orange County teardown or custom build. We know which ones do — and which ones are just wasting your time.
The biggest mistake borrowers make is underestimating the build budget. Lenders will not re-underwrite mid-construction if costs spike.
Lock in your contractor before you apply. Lenders want to see who's doing the work. A vague "I'll find someone" kills deals fast.
A bridge loan can fund a quick teardown purchase, but it won't cover construction costs. You'd need a separate construction loan layered on top.
Hard money moves faster and asks fewer questions. But the rates are steep. Construction loans from wholesale lenders cost less over a 12-18 month build.
Placentia sits in central Orange County with older housing stock. Many homes are 50+ years old — strong candidates for full rebuild or major renovation.
City permitting through Placentia can add weeks to your timeline. Build that into your loan term. Most lenders allow 12 months; some go to 18.
You borrow against the future value of the completed home. Funds are released in draws as construction hits set milestones.
Yes. You can finance the lot purchase and build under one loan. Lenders will want approved plans and a licensed contractor before funding.
Most lenders want 680 or higher. Some wholesale lenders go lower, but expect stricter terms. Rates vary by borrower profile and market conditions.
Yes, but only on what's been drawn. Payments are interest-only during the build phase, which keeps costs manageable.
The construction loan converts to a permanent mortgage. You lock your final rate at that point — either fixed or adjustable.
Plan 45-60 days to close the loan. Most lenders allow 12-18 months to complete the build before conversion is required.