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Santa Ana is dense, established, and short on vacant lots. Building here means teardowns, infill projects, or ADU construction on existing parcels.
Bankrate's latest lender survey shows mortgage rates at 6.27%. That matters for construction loans — your permanent rate gets locked at conversion, not at closing.
680 Typical
Min Credit Score
20–25%
Down Payment
6.27% (Bankrate)
Current Mortgage Rate
Up to 12 Months
Build Period
Licensed GC Required
Contractor Requirement
Most lenders want a 680+ credit score for construction financing. Some go down to 640, but expect tighter loan-to-cost ratios and higher reserves.
You'll need 20–25% equity or down payment. Lenders also require a signed construction contract and licensed contractor before approval.
Most big retail banks offer construction loans, but their programs are rigid. Wholesale lenders give us more flexibility on draw schedules and project types.
We work with 200+ wholesale lenders. That means real options — portfolio lenders who hold the loan, not just agencies that box you in.
One-time close construction loans roll build and permanent financing into one. You avoid double closing costs and lock your permanent rate early.
Two-time close gives you flexibility to shop rates at conversion. In a falling-rate environment, that flexibility has real value.
Hard money construction loans close faster but cost more — think 10–13% rates and 2–4 points. They work for experienced builders, not owner-occupants.
Bridge loans cover gap financing between projects. For a Santa Ana teardown-rebuild, a construction loan is almost always the cleaner structure.
Santa Ana sits in one of California's most expensive counties for permitting and construction. Budget extra time for Orange County plan check and inspections.
ADU construction is booming here. Lenders are getting more comfortable with ADU construction loans, especially on owner-occupied Santa Ana properties.
Funds release in stages as work is completed. Each draw typically requires an inspection before the lender releases the next payment.
Most lenders require a licensed GC. Owner-builder exceptions exist but are rare and come with stricter underwriting.
It combines the build loan and permanent mortgage into one closing. You pay closing costs once and lock your permanent rate upfront.
Yes. Several lenders now offer construction financing specifically for ADU builds on owner-occupied properties in California.
Most lenders require 680+. Below that, expect smaller loan amounts, more equity required, and fewer program options.
Build periods typically run 12 months. Extensions are possible but usually cost fees and require lender approval.
Construction Loans in Santa Ana