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San Diego County completed its biggest year of low-income housing construction. Santee sits in this growth zone, attracting buyers who want custom homes.
Construction loans finance the build, then convert to permanent mortgage when done. This works well in Santee's active market for land and custom builds.
680 FICO
Minimum Credit Score
15–20% of project cost
Down Payment Range
12–18 months
Typical Build Timeline
$1,104,000
2026 Conforming Limit
Construction Loans in Santee
Construction loans require solid credit — typically 680 FICO or higher. Lenders want proof you can carry both construction and permanent loan payments.
San Diego County's median household income of $102,285 supports purchases in the $500,000 to $750,000 range. Down payments run 15% to 20% of project cost.
Local decision guide
Use this guide to connect construction loans eligibility, lender expectations, and local market factors before comparing payment options in Santee.
San Diego County completed its biggest year of low-income housing construction. Santee sits in this growth zone, attracting buyers who want custom homes.
Construction loans finance the build, then convert to permanent mortgage when done. This works well in Santee's active market for land and custom builds.
Construction loans require solid credit — typically 680 FICO or higher. Lenders want proof you can carry both construction and permanent loan payments.
Construction lending in California is specialized — not every lender offers it. Brokers partner with portfolio lenders or banks that hold loans in-house.
The lender disburses funds in draws as construction milestones hit. You pay interest-only during construction, then convert to a 30-year mortgage when complete.
Construction loans make sense in Santee when you have the right lot and contractor. The 2026 conforming limit is $1,104,000, so custom builds under that work well.
They don't work if you're uncertain about timelines or contractor quality. Construction delays add cost, and lenders won't fund until inspections pass.
Construction loans versus existing homes comes down to control versus speed. With construction, you design everything but wait 12–18 months.
Existing homes close faster and need no construction oversight. You move in sooner but accept what's built and compete with other buyers.
Galū Cafe is opening a sister location in City Heights this fall. That neighborhood investment signals growing appeal in San Diego's inner communities.
San Diego is negotiating state law requiring high-rise housing near transit stops. This policy shapes zoning rules that directly impact new construction approval.
Construction loans finance the build with interest-only payments and draws tied to milestones. Once complete, the loan converts to a standard 30-year mortgage.
Typical construction takes 12–18 months from start to occupancy. The permanent mortgage converts quickly once the final inspection passes.
Most lenders require 15–20% down on the total project cost. This is higher than conventional resale purchases, which often accept 5–10% down.
Yes — the lender will approve your permanent loan terms before construction begins. Some lenders offer rate locks during the build.
Delays cost money. You'll continue paying interest-only during construction. Choose a contractor with a solid track record to minimize timeline risk.