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Hollister's real estate market reflects San Benito County's steady growth and affordability relative to coastal California. Construction loans here serve buyers who want to build custom homes rather than buy existing inventory.
Construction loans differ from purchase mortgages because they fund in stages as the home is built. You'll need a detailed construction plan, a licensed builder, and a firm timeline. Lenders typically require 20% down and strong credit (680+) to qualify.
680 FICO
Minimum Credit Score
20%
Minimum Down Payment
6–12 months
Typical Timeline
43%
Max Debt-to-Income
Construction Loans in Hollister
Construction loans in Hollister require a 20% down payment minimum and a FICO score of 680 or higher. Lenders want to see proof of funds, a detailed construction contract, and a timeline from your builder.
Your builder's experience and licensing are non-negotiable. Lenders require a general contractor license and proof of prior projects. You'll also need a construction inspector to verify work at each draw stage.
Local decision guide
Use this guide to connect construction loans eligibility, lender expectations, and local market factors before comparing payment options in Hollister.
Hollister's real estate market reflects San Benito County's steady growth and affordability relative to coastal California. Construction loans here serve buyers who want to build custom homes rather than buy existing inventory.
Construction loans differ from purchase mortgages because they fund in stages as the home is built. You'll need a detailed construction plan, a licensed builder, and a firm timeline. Lenders typically require 20% down and strong credit (680+) to qualify.
Construction loans in Hollister require a 20% down payment minimum and a FICO score of 680 or higher. Lenders want to see proof of funds, a detailed construction contract, and a timeline from your builder.
Construction lending in California is tighter than purchase lending. Most retail banks avoid it; portfolio lenders and credit unions dominate the space. Brokers can access a handful of construction specialists, but rates and terms vary widely.
Closing timelines run 60 to 90 days, longer than a purchase. Lenders require a detailed cost breakdown from your builder, proof of land ownership, and a construction timeline. Some lenders cap loan amounts at $1,000,000; others go higher.
Construction loans make sense in Hollister when you've found land and a builder you trust. The county's median household income of $108,289 supports custom builds in the $600,000 to $850,000 range without stretching.
The real cost isn't just the rate — it's the timeline and complexity. You'll manage inspections, draw requests, and two appraisals. If your builder delays or the project goes over budget, you're stuck.
Construction loans versus a standard purchase mortgage: construction takes twice as long and costs more in rate, but you get exactly what you want. A purchase loan closes in 30 days on an existing home.
The trade-off is customization. You can't change the layout of an existing home; you can with construction. Construction loans also carry higher rates because the lender's risk is greater during the build.
Hollister sits in San Benito County, a region with steady population growth and affordable land. The county's median household income of $108,289 makes custom home building accessible here compared to the Bay Area.
The county's rural character means longer commutes to job centers like San Jose or the Peninsula. Construction loans here work best for buyers who work locally or remote. Schools and services are adequate but not as extensive as urban areas.
20% down is the standard minimum. Some lenders require 25% or more depending on the builder's experience and your credit score. The down payment is held in escrow and released as construction draws are approved.
Expect 60 to 90 days from application to first draw. The actual build takes 6 to 12 months depending on the home's size and complexity.
Yes. Your builder must be licensed and have a track record. Lenders require proof of prior projects and references. Some lenders have preferred builder lists, but you can use your own builder if they meet the lender's standards.
680 FICO is the typical minimum. Some lenders go as low as 660 with compensating factors like a larger down payment or lower debt-to-income ratio. Construction loans are riskier than purchase loans, so credit requirements are stricter.
Yes, but the lock period is usually shorter than a purchase loan — typically 90 to 120 days. Your rate is locked at closing, then you convert to a permanent loan rate when construction is complete.