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Construction Loans in Montague
Montague sits in a rural corner of Siskiyou County where buying land and building new makes more sense than waiting for inventory. Most borrowers here build custom homes on acreage they already own.
Construction loans fund the build phase, then convert to permanent financing once you get your certificate of occupancy. You avoid double closings and pay one set of fees instead of two.
Lenders want 680+ credit and 20% down on the total project cost—land plus construction budget. You need detailed builder plans, a fixed-price contract, and 6-12 months of reserves.
The builder must be licensed and insured in California. Most lenders won't fund owner-builder projects unless you prove prior construction experience with completed builds.
National lenders handle construction loans differently than local banks. Big banks want cookie-cutter suburban projects. Regional lenders understand rural builds with septic, wells, and long driveways.
We work with lenders who fund Siskiyou County projects regularly. They know what it costs to drill a well here and won't balk at gravel roads or propane heating.
Get your land appraised before talking to lenders. If you paid cash for acreage years ago, lenders use current appraised value as your equity contribution toward the 20% down requirement.
Budget 15-20% more than your contractor quotes. Material delays and change orders happen on every build. Lenders won't increase your loan mid-construction, so pad your budget upfront or have cash reserves ready.
Bridge loans fund quick land purchases but don't cover construction costs. Hard money works for spec builders flipping properties, not owner-occupied builds.
Conventional and jumbo loans only finance completed homes. Construction loans are the only product that funds your build and converts to permanent financing without a second closing.
Siskiyou County permit timelines run 8-16 weeks depending on project complexity. Factor this into your construction schedule—lenders start the rate lock clock once permits are approved, not when you apply.
Well and septic costs hit $30K-$50K combined in this area. Lenders require those installed and inspected before releasing framing funds. Many Montague builders complete site work before the construction loan even closes.
Yes. Lenders use your land's appraised value as equity toward the 20% down requirement. You'll need an updated appraisal showing current market value.
You pay cost overruns out of pocket—lenders won't increase the loan mid-build. Timeline extensions are possible but may trigger rate adjustments or extension fees.
No. You make interest-only payments on funds already disbursed during the build. Full principal and interest payments start after conversion to permanent financing.
Expect 60-90 days from application to closing. Lenders need time to review plans, verify contractor licensing, and order appraisals on raw land.
Most lenders require licensed contractors unless you document prior completed builds. Owner-builder projects carry higher risk and often need 25% down instead of 20%.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.