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Construction Loans in Stockton
Stockton offers buildable land at prices that make custom construction pencil out better than coastal markets. Raw acreage and infill lots give you options most Bay Area buyers can't touch.
New construction here means building exactly what you want without paying developer premiums. The gap between finished home prices and construction costs creates immediate equity for savvy borrowers.
Construction loans require 20-25% down on the total project cost—land plus build. Lenders scrutinize your builder's license status, track record, and whether your plans match local permitting reality.
You need credit above 680 and reserves covering 6-12 months of the future mortgage payment. Most lenders want detailed construction budgets and signed builder contracts before they'll even quote rates.
Maybe 15% of our wholesale lenders touch construction loans—this isn't commodity lending. The ones who do it well specialize in either owner-builder scenarios or licensed contractor projects, rarely both.
National banks advertise construction loans but price them like they don't want the business. Regional lenders and credit unions often beat them by a full point if your project fits their box.
Most construction loan failures happen during the draw schedule—borrowers underestimate soft costs or hit permitting delays. Budget an extra 15-20% beyond your contractor's quote for reality.
Your end loan matters as much as the construction loan. We structure these so the permanent financing is locked in before you break ground, eliminating refinance risk when the build finishes.
Bridge loans get you the land fast, then construction financing pays for the build. Some borrowers split it this way when they find a lot before finalizing plans.
Hard money works for fix-and-flip builders but costs double what construction loans run. Jumbo construction loans handle projects over conforming limits—common when land and build together exceed $750k.
San Joaquin County permitting moves slower than your contractor thinks it will. Smart borrowers add 60-90 days to timeline estimates and budget for the extra interest carry.
Stockton's utility connection fees vary wildly by neighborhood—downtown infill costs less than new development zones. These fees hit during construction and lenders don't always catch them in initial budgets.
Lenders release funds in stages as work completes—typically foundation, framing, rough-in, and final. An inspector verifies each phase before the next draw releases.
Some lenders allow owner-builder loans but require construction experience and charge higher rates. Most want a licensed contractor with verifiable local projects.
You cover overruns out of pocket—lenders won't increase the loan mid-construction. This is why experienced brokers pad budgets 15-20% above contractor estimates.
Construction-to-permanent loans lock your end rate upfront. Stand-alone construction loans require refinancing when done, exposing you to rate risk six months out.
Plan for 45-60 days with plans, permits, and builder contracts in hand. Rushed approvals skip underwriting details that cause problems during the build phase.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.