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Tustin's housing stock is tight. Buyers who want specific layouts or modern finishes often can't find them on the market.
A construction loan lets you build exactly what you need. It finances the build, then converts to a permanent mortgage when the home is done.
680+
Min Credit Score
20–25%
Typical Down Payment
12–18 Months
Build Phase Term
Licensed GC Required
Contractor Requirement
Interest-Only Draws
During Build
Construction Loans in Tustin
Construction loans are harder to qualify for than purchase loans. Lenders want a 680+ credit score, strong reserves, and a licensed general contractor.
Most lenders require 20–25% down. Debt-to-income ratio limits are stricter than conventional loans. Self-employed borrowers need two years of tax returns.
Local decision guide
Use this guide to connect construction loans eligibility, lender expectations, and local market factors before comparing payment options in Tustin.
Tustin's housing stock is tight. Buyers who want specific layouts or modern finishes often can't find them on the market.
A construction loan lets you build exactly what you need. It finances the build, then converts to a permanent mortgage when the home is done.
Construction loans are harder to qualify for than purchase loans. Lenders want a 680+ credit score, strong reserves, and a licensed general contractor.
Most big retail banks don't touch construction loans. The lenders who do have narrow appetite and slow draw processes.
At SRK CAPITAL, we work with 200+ wholesale lenders. Several specialize in construction-to-permanent loans for Orange County borrowers.
The biggest mistake I see is borrowers locking in a contractor before they have loan approval. Get the financing squared away first.
Draw schedules are where deals stall. Make sure your GC understands how funds are released — milestone by milestone, not all at once.
A bridge loan can cover a gap between properties but won't fund a build. A construction loan is purpose-built for ground-up projects.
Hard money construction lenders move faster but charge higher rates. Conventional construction-to-perm loans cost less if you qualify.
Tustin has active infill development, including teardown-and-rebuild projects near Old Town. Lot availability makes construction viable here.
Orange County permitting timelines affect your build schedule. Factor 3–6 months for permits before a single nail is driven.
You draw funds in stages as the build progresses. At completion, the loan converts to a standard mortgage.
Yes. Lenders require a licensed, insured general contractor before approving a construction loan. Owner-builder exceptions are rare.
Most lenders want 680 or higher. A stronger score improves your rate and reserve requirements. Rates vary by borrower profile and market conditions.
Some lenders offer lot-plus-construction programs. Others require a separate lot loan first. We'll match you to the right structure.
Typical terms run 12–18 months for the build phase. Extensions are possible but add cost and complexity.
The lender won't add more funds automatically. Budget a 10–15% contingency from the start to cover overruns.