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Colton sits in San Bernardino County, where land is more available than in coastal cities. That makes building a real option here, not just a backup plan.
Construction loans fund your build phase first. At completion, the loan converts to a permanent mortgage. You're not buying someone else's house — you're building yours.
680 Typical
Min Credit Score
20% Standard
Down Payment
12–18 Months
Build Phase Length
Required
Licensed Contractor
Varies by Profile
Rate Type
Lenders treat construction loans differently than purchase loans. Expect stricter credit requirements — most lenders want a 680 or higher. A 20% down payment is standard.
You also need approved plans, a licensed contractor, and a signed build contract before closing. Lenders lend against a finished home value, not raw land.
Not every lender does construction loans. Many banks won't touch them. That's why access to 200+ wholesale lenders matters — we find the ones who actually close these deals.
Construction lending is relationship-driven. The lenders who do it well have inspection teams and draw schedules dialed in. The wrong lender can stall your build.
The biggest mistake I see? Borrowers picking a lender based on rate alone. A cheap rate with a slow draw process can cost you more in contractor delays than you saved.
Get your builder and lender talking early. Lenders want proof your contractor can execute. A builder with clean financials and past projects speeds approval significantly.
A bridge loan gets you from A to B fast but carries higher rates and short terms. A construction loan is purpose-built for this — it's structured around your build timeline.
Hard money can fund fast with less documentation. But rates are steep and terms are short. Construction loans from traditional lenders cost less over a 12-18 month build.
Colton requires permits through the city's Building and Safety Division. Factor in permitting timelines when setting your construction schedule with your lender.
San Bernardino County has active utility and infrastructure zones near Colton. Your lender's appraiser will assess as-completed value based on local comps — have your plans detailed.
Funds release in stages as your build hits milestones. At completion, the loan converts to a permanent mortgage.
Most lenders require 680 or higher. Some programs allow lower scores with a larger down payment.
Yes. Lenders require a licensed, insured contractor and a signed build contract before approving your loan.
Yes. Many construction loans cover land purchase and build costs together in one loan package.
It combines the construction phase and permanent mortgage into one closing. You avoid paying two sets of closing costs.
Typically 12 to 18 months for the build phase. Your permanent mortgage kicks in once the home is complete.
Construction Loans in Colton