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Fontana has land. That matters for construction loans more than almost anything else.
San Bernardino County still has buildable lots where the Inland Empire's older submarkets don't. That gives Fontana buyers a real shot at new construction financing.
680–700+
Min Credit Score
20%
Typical Down Payment
12 months
Typical Loan Term
6.19% (as of 3/2026)
Rate Benchmark
1 closing
Closings (1-time close)
Construction loans are harder to qualify for than standard purchase loans. Lenders want at least a 680 credit score, often 700+.
Most lenders require 20% down on a construction loan. You also need a licensed contractor and approved building plans before closing.
Not every lender offers construction loans. The pool shrinks fast compared to conventional or FHA options.
We work with 200+ wholesale lenders at SRK CAPITAL. That matters here — construction loan guidelines vary more between lenders than almost any other product.
Bankrate flagged rates climbing to 6.19% this week on geopolitical tension. For construction borrowers, that rate affects your permanent loan at conversion — plan accordingly. Rates vary by borrower profile and market conditions.
The draw schedule is where most construction loans go sideways. Your lender releases funds in stages as work is completed. Know that timeline before you sign anything.
A construction-to-permanent loan closes once and converts automatically. A standalone construction loan requires two closings — and two sets of closing costs.
Hard money and bridge loans can fund faster but carry higher rates. For a full ground-up build in Fontana, a construction-to-permanent is usually the cleaner path.
San Bernardino County has specific permitting timelines. Factor those into your build schedule — lenders set interest reserve periods based on projected completion.
Fontana sits in a high-growth corridor. That can work in your favor for appraisals, which are based on the completed home's projected value — not the current lot.
You borrow to fund the build, then convert to a permanent mortgage when it's done. Funds release in draws as construction milestones are met.
Not always. Some lenders fold land purchase into the construction loan. You'll need the lot identified and a builder contracted before closing.
Most lenders say no. They want a licensed, insured contractor with a track record. Owner-builder programs exist but are rare and harder to qualify for.
Plan for 680 minimum, with 700+ putting you in a stronger position. Scores below that significantly limit which lenders will touch the deal.
Typically 12 months. Some lenders offer extensions if the build runs long, but you may pay fees for that. Build your timeline conservatively.
It's a funded account that pays your interest during the build. You don't make out-of-pocket payments — the reserve covers it until the loan converts.
Construction Loans in Fontana