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Construction Loans in Loomis
Loomis attracts buyers wanting custom builds on larger lots. Few cookie-cutter subdivisions here—people build what they want.
Construction loans let you buy land and build simultaneously. You draw funds as the project hits milestones, not all at once.
Most Loomis builds run 8-12 months from groundbreaking to certificate of occupancy. Your loan timeline needs to match that reality.
Placer County permits move slower than Sacramento proper. Budget 3-4 months for plan approval before your first draw.
Lenders want 680+ credit and 20% down minimum. Most require construction experience from your builder, not just a license.
You'll need detailed plans, a fixed-price contract, and proof your builder carries proper insurance. No handshake deals.
Debt-to-income under 43% is standard. Lenders calculate your future mortgage payment, not just interest-only construction draws.
Expect reserves covering 6-9 months of payments. Construction delays happen—lenders want proof you can handle them.
Regional banks dominate construction lending in Placer County. They know local builders and can move faster than national lenders.
One-time-close loans convert to permanent mortgages automatically. Two-time-close means refinancing when construction ends—double the closing costs.
Most lenders cap construction loans at 80% loan-to-cost. You fund overruns out of pocket, so accurate budgeting matters.
Not every lender works with owner-builders. If you're acting as your own general contractor, your options shrink by 60%.
I route Loomis construction deals to three lenders who actually understand foothill builds. They know what septic systems cost and why grading eats budgets.
Contingency reserves matter more than borrowers think. I push clients toward 15% over budget—not the 10% builders suggest.
Best scenario: buy the land with cash or a separate lot loan first. Construction-only financing beats construction-to-perm on rate and flexibility.
Watch inspection requirements. Some lenders send inspectors for every $25k draw. Others trust builders more and keep costs lower.
Bridge loans work for buying before you sell, but construction loans fund actual building. Different tools for different problems.
Renovation projects under $75k often fit better in HELOC or cash-out refinance territory. Construction loans make sense for major structural work.
Hard money covers land purchases when banks won't. Then you refinance into construction financing once permits are approved.
Jumbo construction loans kick in above conforming limits. Loomis custom builds frequently hit that threshold given land and building costs.
Loomis sits in foothill country. Foundation costs run higher than flat Sacramento suburbs due to grading and soil conditions.
Well and septic requirements add $40k-60k to rural builds. City water and sewer aren't everywhere—verify before you budget.
Fire-rated materials cost more but you'll need them for insurance. Many carriers won't write new construction without specific wildfire mitigation.
Placer County requires energy compliance beyond state minimums. Your construction budget needs to account for enhanced insulation and HVAC.
Plan 45-60 days from application to funding. Lenders review plans, verify your builder, and order appraisals on projected value.
Some lenders allow it with construction experience and higher down payments. Most require licensed GCs with local references and insurance.
You fund overruns with cash. Lenders won't increase loan amounts mid-project, so accurate initial budgeting prevents problems.
You pay interest only on drawn funds during construction. Full principal and interest payments start when the loan converts to permanent financing.
Your lender holds remaining funds and requires a replacement contractor before releasing more draws. This adds time and potential cost increases.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.