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San Clemente sits on one of the last buildable coastal stretches in Orange County. Lots with ocean views command serious premiums here.
Building new makes sense when resale inventory is tight. A construction loan lets you design to spec instead of competing for overpriced existing homes.
680–720+
Min Credit Score
20–25%
Down Payment
12 months
Typical Build Term
Required
Builder Approval
Interest only
During Construction
Construction Loans in San Clemente
Most lenders want a 680+ credit score for construction loans. Some require 720 or higher, especially on coastal custom builds.
Expect a 20-25% down payment. Lenders see unbuilt homes as higher risk than existing properties.
Local decision guide
Use this guide to connect construction loans eligibility, lender expectations, and local market factors before comparing payment options in San Clemente.
San Clemente sits on one of the last buildable coastal stretches in Orange County. Lots with ocean views command serious premiums here.
Building new makes sense when resale inventory is tight. A construction loan lets you design to spec instead of competing for overpriced existing homes.
Most lenders want a 680+ credit score for construction loans. Some require 720 or higher, especially on coastal custom builds.
Not every lender offers construction loans. Most big retail banks have pulled back from this product since 2020.
We work with wholesale lenders who specialize in construction-to-permanent programs. That one-close structure saves you significant closing costs.
The builder approval process trips up most borrowers. Your lender has to vet your contractor before they'll fund a single draw.
Get your builder's license, insurance, and financials ready before you apply. Delays here cost months, not weeks.
Hard money construction loans fund faster but carry significantly higher rates. They work for experienced developers, not primary home buyers.
Bridge loans cover lot purchases while you finalize plans. Construction loans then take over at groundbreak. Both may be needed.
San Clemente's coastal zone adds permitting layers. City and Coastal Commission approvals both affect your timeline and budget.
Hillside and bluff lots require soils reports and engineered foundations. Lenders factor this into draw schedules and appraisals.
Funds release in draws as construction milestones are met. At completion, the loan converts to a standard mortgage.
No. You pay interest only on funds drawn so far. Full payments start after the loan converts to permanent financing.
Some programs include lot purchase in the total loan. Others require you to own the land before they'll fund construction.
Most lenders require 680 minimum. Coastal custom builds often push that requirement to 720 or higher.
Typical build periods are 12 months. Extensions are available but lenders charge fees and may reprice your rate.
Yes. Lenders require your contractor to be licensed, insured, and financially vetted before approving the loan.