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Campbell sits in the heart of Santa Clara County — one of the most land-constrained markets in California. Building new here is rare, which makes construction financing even more specialized.
Lot inventory is tight. Buyers who find a teardown or vacant parcel in Campbell move fast. Having your construction loan pre-arranged before you make an offer is not optional.
680 (720 preferred)
Min Credit Score
20–25%
Typical Down Payment
12–18 months
Typical Loan Term
Required by lender
Contractor Approval
Interest-only draws
During Build
Construction Loans in Campbell
Most lenders want a 680 credit score minimum for construction loans. Some go higher — 720 is safer. This is not a forgiving loan type for borderline credit profiles.
Expect a 20-25% down payment. Lenders are financing something that doesn't exist yet, so they price in that risk. Strong reserves help your approval odds significantly.
Local decision guide
Use this guide to connect construction loans eligibility, lender expectations, and local market factors before comparing payment options in Campbell.
Campbell sits in the heart of Santa Clara County — one of the most land-constrained markets in California. Building new here is rare, which makes construction financing even more specialized.
Lot inventory is tight. Buyers who find a teardown or vacant parcel in Campbell move fast. Having your construction loan pre-arranged before you make an offer is not optional.
Most lenders want a 680 credit score minimum for construction loans. Some go higher — 720 is safer. This is not a forgiving loan type for borderline credit profiles.
Not every lender does construction loans. Most retail banks have pulled back from this product. Wholesale lenders that specialize in construction are where competitive programs live.
We work with 200+ wholesale lenders. A handful of them specifically handle construction-to-permanent loans in high-cost California counties like Santa Clara. That access matters here.
The draw schedule is where most borrowers get surprised. Lenders release funds in stages as construction milestones are hit — not all at once. Plan your contractor payments around that.
Construction loans carry higher rates than permanent mortgages during the build phase. Rates vary by borrower profile and market conditions. A construction-to-perm loan locks your permanent rate early and saves a second closing.
A bridge loan funds the gap between buying and selling — not building. Hard money moves faster but at much higher rates. Construction loans are purpose-built for ground-up projects.
If your project is a major renovation rather than new construction, a renovation conventional loan may cost less overall. The right product depends on your project scope and timeline.
Santa Clara County has strict permitting. Campbell specifically has design review requirements that can add months to your project timeline. Factor that into your loan term.
Construction costs per square foot in the South Bay run high. Your lender's appraiser will estimate the completed value — make sure your builder's bid aligns with local comps.
Most construction loans run 12 to 18 months. Campbell's permitting delays make 18 months the safer choice.
Most lenders say no. They require a licensed, vetted GC. Owner-builder programs exist but are rare and harder to qualify for.
You either convert to a permanent mortgage or refinance. A construction-to-perm loan handles both in one closing.
No. You pay interest only on funds drawn. Full payments start after the loan converts to a permanent mortgage.
Yes, though smaller ADU projects sometimes fit better under renovation or HELOC products. Scope and cost determine the right fit.
The appraiser estimates the completed home's value. Your loan is based on that future value, not today's lot price alone.