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Cathedral City sits in the Coachella Valley, where buildable lots still exist and custom builds make real sense.
Construction loans fund your build phase first. They convert to a permanent mortgage once the home is complete.
680+
Min Credit Score
20-25%
Down Payment
12-18 months
Typical Build Term
Interest-only
Payments During Build
10-15% of budget
Contingency Reserve
Construction Loans in Cathedral City
Most lenders want a 680+ credit score for construction loans. Some go higher — 720 is a safer target.
Expect a 20-25% down payment. Lenders take on more risk during construction, so they require more skin in the game.
Local decision guide
Use this guide to connect construction loans eligibility, lender expectations, and local market factors before comparing payment options in Cathedral City.
Cathedral City sits in the Coachella Valley, where buildable lots still exist and custom builds make real sense.
Construction loans fund your build phase first. They convert to a permanent mortgage once the home is complete.
Most lenders want a 680+ credit score for construction loans. Some go higher — 720 is a safer target.
Construction lending is specialty territory. Most big retail banks don't do it well — or at all.
As a broker with 200+ wholesale lenders, we can reach portfolio lenders who actually specialize in this product.
The biggest deal-killer we see: borrowers start buying materials before closing. That creates title issues fast.
Get your builder approved before you apply. Lenders vet the contractor just as hard as they vet you.
Bridge loans work if you're buying land and need quick capital. Construction loans are built for the full build cycle.
Hard money moves faster but costs more. Construction loans from conventional lenders offer better long-term rates.
Cathedral City has Riverside County permitting requirements. Build timelines here typically run longer than coastal cities.
Desert climate affects construction schedules. Lenders set draw timelines — delays can create extension fee exposure.
Funds release in draws as each build phase completes. After construction ends, the loan converts to a permanent mortgage.
Most lenders say no. They require a licensed GC with a verifiable track record and proper insurance.
Typical build periods run 12 months. Some lenders allow 18-month terms for larger or more complex projects.
Yes, but only on funds drawn so far. Payments are interest-only during the build phase.
The lender won't cover cost overruns automatically. You need a cash contingency reserve — typically 10-15% of the budget.
Yes. Construction loans carry more risk, so rates run higher during the build phase. Rates vary by borrower profile and market conditions.