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Capitola's coastal location makes new construction rare and expensive. Lots are scarce, and what's available commands a premium.
Building here gives you control over finishes, layout, and flood-zone design — things you can't fix on an existing home.
680+
Min Credit Score
20–25%
Down Payment
6–12 months
County Permit Timeline
Required
Contractor Approval
See broker
Rates Vary By Profile
Construction Loans in Capitola
Most construction lenders want a 680+ credit score. Some require 700 or higher, especially for coastal projects.
Expect to put 20–25% down. 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 Capitola.
Capitola's coastal location makes new construction rare and expensive. Lots are scarce, and what's available commands a premium.
Building here gives you control over finishes, layout, and flood-zone design — things you can't fix on an existing home.
Most construction lenders want a 680+ credit score. Some require 700 or higher, especially for coastal projects.
Most retail banks shy away from construction loans. The approval process is tighter and draws take active management.
We work with wholesale lenders who specialize in construction-to-perm deals. That matters — a lender who does three construction loans a year will slow you down.
One-time-close construction loans lock your rate and terms upfront. You close once — at the start — and roll into your permanent mortgage automatically.
Two-time-close loans give more flexibility but cost more. You pay closing costs twice and take on rate risk when you convert.
Bridge loans work if you're financing a teardown-rebuild and need to carry an existing property. Construction loans don't cover that gap.
Jumbo construction loans apply when your finished home value will exceed conforming limits. In Santa Cruz County, that ceiling hits fast.
Santa Cruz County permitting is slow. Factor 6–12 months for approvals before a shovel hits the ground. Your lender needs to know this.
Coastal Commission rules apply to many Capitola parcels. They can restrict height, setbacks, and materials — all of which affect your build budget.
Most lenders require 680 minimum. Coastal projects often push that to 700 or higher.
With a one-time-close loan, it converts automatically at completion. Two-time-close requires a second closing and new approval.
Yes. Major renovation financing works similarly but scope and permits must satisfy lender guidelines.
Loan approval can take 30–60 days. County permitting often adds months before construction can start.
Yes. Most construction lenders require a licensed, insured general contractor they review and approve before funding.
Your loan won't expand to cover overruns. You'll need cash reserves or a separate line of credit to cover the gap.