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Monte Sereno is one of Santa Clara County's most exclusive enclaves. Lot values here are high, and buyers often prefer building custom over settling for existing inventory.
Construction financing in this market means large loan amounts. You'll almost certainly be in jumbo territory before the foundation is poured.
680+
Min Credit Score
20–25%
Down Payment
12–18 Months
Typical Loan Term
Jumbo Territory
Loan Type
Locked at Closing
Rate Timing
Construction Loans in Monte Sereno
Construction loans are harder to qualify for than standard purchase loans. Lenders want a 680+ credit score, strong reserves, and a fully permitted set of plans before they'll commit.
Expect a down payment of 20–25% on the total project cost. That includes land, construction budget, and contingency — not just the build itself.
Local decision guide
Use this guide to connect construction loans eligibility, lender expectations, and local market factors before comparing payment options in Monte Sereno.
Monte Sereno is one of Santa Clara County's most exclusive enclaves. Lot values here are high, and buyers often prefer building custom over settling for existing inventory.
Construction financing in this market means large loan amounts. You'll almost certainly be in jumbo territory before the foundation is poured.
Construction loans are harder to qualify for than standard purchase loans. Lenders want a 680+ credit score, strong reserves, and a fully permitted set of plans before they'll commit.
Most big retail banks offer construction loans, but their programs are rigid. Portfolio lenders and regional banks tend to move faster and handle complex custom builds better.
We work with 200+ wholesale lenders. For a Monte Sereno build, we're targeting lenders who specialize in high-value custom construction — not cookie-cutter tract home programs.
The draw schedule is where most borrowers get surprised. Funds release in stages as construction milestones are hit — not all at once. Your builder needs to understand this.
One-time close construction loans are worth asking about. They lock your rate and combine the construction and permanent mortgage into a single closing. That saves you time and closing costs.
Bridge loans can cover land purchase while you finalize plans, but they carry higher rates and short terms. They're a gap tool, not a build tool.
Hard money construction loans close fast but cost more. For a high-end Monte Sereno build, the math rarely favors hard money unless speed is critical and equity is deep.
Monte Sereno sits in the Los Gatos hills area with strict city oversight. Permit timelines here can run long — plan your construction loan term accordingly.
As of April 2026, Santa Clara County construction costs remain elevated. Build budgets need healthy contingency reserves, and lenders know it. Underwriters will scrutinize your cost breakdown.
You borrow against the projected finished value. Funds release in draws tied to build milestones, then convert to a permanent mortgage at completion.
Most lenders want 680 minimum. For jumbo construction loans common in Monte Sereno, expect 700 or higher.
Not always. Some programs let you roll land purchase into the construction loan. Bring your land contract or deed to your first conversation.
It combines construction and permanent financing into one closing. You set your rate once and avoid a second set of closing costs.
Yes. Major renovations that require permits typically qualify. The scope and cost need to be documented with contractor bids.
Most terms run 12–18 months. Monte Sereno's permit environment means 18 months is often the safer choice.