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Tracy sits at the edge of the Bay Area commute zone. Land is available here in ways it isn't in Alameda or Santa Clara County.
That makes construction financing worth serious consideration. Building gives you control over finishes, layout, and lot position — none of which you get buying resale.
680+
Min Credit Score
Up to 12 months
Typical Build Window
One-time close available
Closings
10–15% of project cost
Contingency Reserve
Construction Loans in Tracy
Construction loans are harder to qualify for than standard purchase loans. Lenders want at least a 680 credit score and solid reserves.
You'll need approved plans, a licensed contractor, and a realistic budget. Lenders fund in draws — they release money in stages as work gets done.
Local decision guide
Use this guide to connect construction loans eligibility, lender expectations, and local market factors before comparing payment options in Tracy.
Tracy sits at the edge of the Bay Area commute zone. Land is available here in ways it isn't in Alameda or Santa Clara County.
That makes construction financing worth serious consideration. Building gives you control over finishes, layout, and lot position — none of which you get buying resale.
Construction loans are harder to qualify for than standard purchase loans. Lenders want at least a 680 credit score and solid reserves.
Most big retail banks offer construction loans but move slowly and have rigid requirements. Wholesale lenders we access often have faster draw schedules.
Not every lender does construction-to-permanent loans. We specifically shop lenders who handle both phases under one closing — that saves you money.
The biggest mistake borrowers make is underestimating the budget. Lenders will require a contingency reserve — usually 10-15% of the project cost.
Get your contractor lined up before you apply. Lenders vet them. An unlicensed or inexperienced builder can kill the deal before it starts.
Bridge loans and hard money are faster but far more expensive. They work for quick projects but not a full ground-up build in Tracy.
A conventional construction-to-permanent loan gives you market rates for the long haul. It costs more upfront in documentation but saves over 30 years.
San Joaquin County has active permit offices but timelines vary. Factor in local permitting delays when setting your construction schedule with your lender.
Tracy's growth has brought new subdivisions and infill lots. Both work for construction loans — lenders care more about the appraised completed value than the zip code.
You borrow against the future value of the completed home. Funds are released in draws as construction milestones are hit.
Some lenders offer rate locks on construction-to-perm loans. Ask upfront — this protects you if rates move during the build.
Most lenders want 680 or higher. Some go lower but expect tighter conditions and higher rates. Rates vary by borrower profile and market conditions.
Not always. Many lenders allow land purchase and construction to be wrapped into one loan. It simplifies the process significantly.
Most lenders allow 12 months to build. Extensions exist but must be negotiated before the deadline — don't wait until you're behind.
You cover overages out of pocket. That's why lenders require a contingency reserve. Never go in without one.