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San Diego's resale inventory stays tight. Building from scratch gives you options that buying can't.
Construction loans fund the build, then convert to a permanent mortgage when the home is done.
680+
Min Credit Score
20–25%
Down Payment
12–18 Months
Typical Loan Term
Licensed & Approved
Builder Requirement
Interest-Only
During Build
Construction Loans in San Diego
Most lenders want a 680+ credit score for construction loans. Some go lower with stronger reserves.
Expect to put 20-25% down. Lenders see construction as higher risk than a standard purchase.
Local decision guide
Use this guide to connect construction loans eligibility, lender expectations, and local market factors before comparing payment options in San Diego.
San Diego's resale inventory stays tight. Building from scratch gives you options that buying can't.
Construction loans fund the build, then convert to a permanent mortgage when the home is done.
Most lenders want a 680+ credit score for construction loans. Some go lower with stronger reserves.
Most retail banks offer construction loans, but their programs are rigid. Wholesale lenders have more flexibility on draw schedules and builder approvals.
We work with 200+ wholesale lenders. That matters when your builder or lot situation doesn't fit a cookie-cutter program.
The biggest mistake I see: borrowers lock a lender before vetting the builder approval process. That mismatch kills deals mid-construction.
Get your builder pre-approved by the lender before breaking ground. It saves you weeks and prevents costly surprises.
A bridge loan covers short gaps but won't fund a full build. Hard money moves faster but costs more.
Construction loans beat hard money on rate. They beat bridge loans on term length. The tradeoff is stricter qualification.
San Diego County has strict permitting timelines. Factor 6-12 months for permits before breaking ground in many jurisdictions.
Coastal construction faces additional California Coastal Commission rules. Inland areas like El Cajon or Santee move faster through permitting.
Most lenders require 680 or higher. Strong reserves can help if your score is on the lower end.
Funds are released in stages as construction milestones are met. The lender inspects before each draw.
It combines the construction and permanent mortgage into one closing. You lock your rate upfront and avoid a second closing cost.
Yes, but only on the amount drawn so far. Payments are interest-only during the build phase.
Yes, but expect longer timelines. Coastal Commission review adds months to the permitting process.
Most terms run 12 to 18 months. Extensions are possible but may require lender approval and added fees.