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San Francisco has some of the most expensive land in the country. Building new or gutting a property to studs is often the only way to get exactly what you need.
Construction loans here are almost always jumbo territory. Plan for a project budget that reflects SF permitting costs, labor rates, and timeline delays.
680–720+
Min Credit Score
20–25%
Typical Down Payment
12–18 months
Construction Term
Required
Builder Approval
6–12+ months
SF Permit Timeline
Construction Loans in San Francisco
Lenders want a 680+ credit score for most construction loans. Some require 720 or higher, especially on larger SF projects.
Expect to put 20-25% down on the total project cost. That includes land, hard construction costs, and soft costs like permits and architect fees.
Local decision guide
Use this guide to connect construction loans eligibility, lender expectations, and local market factors before comparing payment options in San Francisco.
San Francisco has some of the most expensive land in the country. Building new or gutting a property to studs is often the only way to get exactly what you need.
Construction loans here are almost always jumbo territory. Plan for a project budget that reflects SF permitting costs, labor rates, and timeline delays.
Lenders want a 680+ credit score for most construction loans. Some require 720 or higher, especially on larger SF projects.
Most retail banks offer construction loans, but their appetite for SF projects varies widely. Terms, draw schedules, and rate structures differ a lot between lenders.
We work with 200+ wholesale lenders. That matters here — finding one with experience in high-cost California builds is not a given.
The one-time close construction loan is the most underused tool in SF. It locks your permanent rate at closing and skips the second round of underwriting.
Get your builder approved early. Lenders scrutinize contractor licenses, financials, and track records. An unlicensed or thin-resume builder will kill the deal.
A bridge loan can fund a quick gut renovation but carries higher rates and short terms. Construction loans offer longer timelines for complex builds.
Hard money moves faster and asks fewer questions. But the cost is steep. Construction loans are cheaper if you can meet the documentation requirements.
SF's Department of Building Inspection is notoriously slow. Build 6-12 months of permit time into your project schedule before a shovel touches dirt.
Hillside lots, seismic retrofitting, and historic district rules add cost and complexity. Your lender needs to understand SF-specific build conditions.
It combines the construction loan and permanent mortgage into one closing. You avoid a second round of underwriting when the build is done.
Lenders release funds in stages tied to build milestones. An inspector verifies work completion before each draw is approved.
Yes, if the scope qualifies as substantial rehabilitation. Full gut renovations and structural overhauls typically meet the threshold.
Yes. Lenders require a licensed, insured general contractor. Most also review the contractor's financial standing and project history.
Most construction periods run 12-18 months. SF projects often need the full term given local permitting and inspection timelines.
Cost overruns come out of pocket. Lenders won't increase the loan mid-build, so building a buffer into your budget upfront is critical.