Loading
Grand Terrace sits in San Bernardino County where buildable lots still exist. That makes construction financing a real option here — not just a last resort.
CNBC flagged 30-year conforming rates hitting 6.30% as of March 2026. Construction loan rates typically run higher than that, so locking your permanent rate early matters.
680+
Min Credit Score
20–25%
Down Payment
12 Months
Typical Build Term
One-Time or Two-Time
Closes
Variable During Build
Rate Type
Most lenders want a 680 credit score minimum for construction loans. Some go to 700+. This is stricter than a standard purchase mortgage.
Expect a 20–25% down payment requirement. Lenders see unbuilt homes as higher risk than existing properties.
Most big retail banks have pulled back from construction lending. The best programs sit with portfolio lenders and regional credit unions.
At SRK CAPITAL we access 200+ wholesale lenders. We find the handful who still price construction loans competitively in San Bernardino County.
One-time close construction loans save you money. You close once, then the loan converts to permanent financing when the build finishes.
Two-time close loans give more flexibility but cost you two sets of closing costs. For most Grand Terrace borrowers, one-time close wins.
Bridge loans work if you already own land and need short-term funding fast. Construction loans are the right tool when you're building start to finish.
Hard money moves quicker but costs more. Construction loans take longer to approve but carry lower rates and longer terms.
San Bernardino County permitting timelines affect your draw schedule. Delays in permits can push interest-only periods longer than budgeted.
Grand Terrace is a small, quiet city. Appraisers using comparable sales here may have limited data, which can affect your loan-to-value calculation.
Most lenders require at least 680. Some programs push that to 700 for larger loan amounts.
Yes. Existing land equity can count toward your down payment requirement. Your lender will appraise the lot.
You close once before construction starts. The loan automatically converts to a mortgage when the build completes.
Most have 12-month build terms. Extensions are possible but usually cost a fee.
Yes — construction rates run higher. Rates vary by borrower profile and market conditions.
Yes. Lenders vet your contractor's license, insurance, and track record before approving the loan.
Construction Loans in Grand Terrace