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Construction Loans in San Bruno
How long does a construction loan take to close?
Construction loans typically close in 17 to 21 days. The build phase lasts 12 to 24 months with interest-only payments. Once complete, the loan converts to a standard mortgage.
01
San Bruno's real estate market is shifting as San Mateo County invests in mixed-use development. The Bespoke project at the former Talbot's downtown site signals renewed interest in the area.
Construction loans let buyers build custom homes rather than settle for existing inventory. You secure land first, then draw funds as work progresses.
680 FICO
Minimum Credit Score
20% of project cost
Typical Down Payment
12-24 months
Build Timeline
$1,249,125
2026 Conforming Limit
02
Construction loans typically require 680+ FICO and 20% down on total project cost. Lenders evaluate your builder's track record and project timeline.
San Mateo County's median household income of $156,000 supports projects in the $600,000 to $900,000 range. Your debt-to-income ratio matters more on construction loans than purchase mortgages.
Local decision guide
Use this guide to connect construction loans eligibility, lender expectations, and local market factors before comparing payment options in San Bruno.
San Bruno's real estate market is shifting as San Mateo County invests in mixed-use development. The Bespoke project at the former Talbot's downtown site signals renewed interest in the area.
Construction loans let buyers build custom homes rather than settle for existing inventory. You secure land first, then draw funds as work progresses.
Construction loans typically require 680+ FICO and 20% down on total project cost. Lenders evaluate your builder's track record and project timeline.
Rate check
Tell us the price range, down payment and credit range you are working with. We compare every lender we work with and show you the options side by side.
03
California construction lenders fall into two camps: portfolio lenders who hold loans in-house and correspondent lenders who sell to investors. Portfolio lenders often move faster on custom builds.
Most construction loans convert to permanent mortgages once the home is complete. The interest-only phase typically lasts 12 to 24 months depending on build timeline.
04
Construction loans make sense in San Bruno when you've found the right land and have a solid builder lined up. The conforming limit of $1,249,125 in 2026 covers most custom builds here.
The real advantage appears when you want specific features that existing homes don't offer. Standard purchases work better if you need to close in 30 days or less.
05
Construction loans differ from purchase mortgages in timing and payment structure. A purchase mortgage closes in 30 days with a fixed monthly payment.
Construction loans take 6 to 24 months and charge interest-only during build, then convert to standard mortgage. You get customization and design control versus speed and certainty.
06
San Mateo's downtown redevelopment is attracting builders and investors to the area. The Bespoke mixed-use project at the former Talbot's site shows the county's commitment to new construction.
School districts across San Mateo County are seeking voter approval for funding measures on the June ballot. Building a custom home here means your investment aligns with the county's growth trajectory.
FAQ
Construction loans typically close in 17 to 21 days. The build phase lasts 12 to 24 months with interest-only payments. Once complete, the loan converts to a standard mortgage.
Yes — 20% down is the standard requirement on total project cost. This covers land acquisition and construction expenses. Some lenders accept 15% down with strong income and reserves.
Most lenders require 680+ FICO for construction financing. Some portfolio lenders accept 660+ if your income and reserves are solid. Higher scores bring better rates and terms.
No — most construction loans prohibit occupancy during the build phase. Once construction is complete and the loan converts to permanent mortgage, you can move in. Conversion typically happens within 30 days of final inspection.
The construction loan automatically converts to a permanent mortgage. Your lender orders a final appraisal and title search. Your payment switches from interest-only to principal and interest.
Programs for first-time buyers that allow lower down payments and more forgiving credit and income rules.
Explore refinancing options to lower your rate, tap equity, or switch loan terms.
SRK CAPITAL in San Mateo County
Our team of licensed mortgage brokers works San Mateo County every week. Tell us where you are in the process and we will map out the loan, the timeline and the money you need at closing, with no obligation.
What working with us looks like
Licensed mortgage brokers
You talk with a broker, not a call center, from the first question to closing day.
17-21 day typical close
Most purchase loans close in 17-21 days once your paperwork is in.
Every county in California
We work across the state, including San Mateo County, so local limits and rules are already familiar.
Financing solutions for rental properties, fix-and-flip projects, and real estate portfolios.
Mortgage programs with alternative income documentation for business owners and freelancers.
Federally insured or guaranteed programs (FHA, VA, USDA) that let lenders accept lower credit scores and smaller down payments.
Traditional mortgage options meeting standard lending guidelines with various term structures.
Alternative lending programs for borrowers who need flexible documentation or unique loan structures.
This page is for educational purposes only and does not constitute financial, legal, or tax advice. Mortgage rates, terms, and program availability can change and vary by borrower and property. Consult a licensed mortgage professional for guidance on your scenario.