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Los Gatos sits in one of California's most expensive ZIP codes. Building new often beats buying existing — if you can finance it right.
Santa Clara County land costs are steep. Construction loans let you control the build and the budget from day one.
680+
Min Credit Score
20–25%
Typical Down Payment
Up to 12 months
Loan Term (Build Phase)
Available
One-Time Close Option
Interest-only draws
During Build
Construction Loans in Los Gatos
Most lenders want a 680+ credit score for construction loans. Some require 720 or higher, especially on jumbo builds.
Expect a 20-25% down payment. Lenders see construction as higher risk than a standard purchase.
Local decision guide
Use this guide to connect construction loans eligibility, lender expectations, and local market factors before comparing payment options in Los Gatos.
Los Gatos sits in one of California's most expensive ZIP codes. Building new often beats buying existing — if you can finance it right.
Santa Clara County land costs are steep. Construction loans let you control the build and the budget from day one.
Most lenders want a 680+ credit score for construction loans. Some require 720 or higher, especially on jumbo builds.
Most retail banks offer construction loans, but their programs are rigid. Wholesale lenders often have better draw schedules and terms.
As a broker, we shop construction programs across 200+ wholesale lenders. That matters when your build runs six to twelve months.
The biggest mistake builders make: locking a lender late. Rate locks on construction loans are short. Plan your timeline before you apply.
One-time close loans combine construction and permanent financing. You close once, lock your rate, and skip a second round of underwriting.
Bridge loans work if you already own land and need short-term capital. Construction loans are built for the full build cycle.
Jumbo construction loans are common in Los Gatos given local land and build costs. Rates differ from conforming — rates vary by borrower profile and market conditions.
Los Gatos has strict architectural review requirements. Your timeline must account for town approvals before a lender will fund.
Santa Clara County permit delays are real. Lenders won't extend draw schedules indefinitely — build permit timelines into your loan structure.
The lender funds your build in stages called draws. Once construction is complete, the loan converts to a permanent mortgage.
Most lenders require 680 or higher. Jumbo construction programs in Santa Clara County often require 720 or better.
Some lenders allow owner-builder loans, but most require a licensed GC. Options narrow significantly without one.
Most run 12 months. Los Gatos permit timelines can eat into that — factor in town review before you apply.
No. You pay interest only on drawn funds during the build phase. Full payments begin after the loan converts.
You close once, covering both the build and permanent loan. It saves closing costs and locks your rate upfront.