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Construction Loans in Dixon
Dixon's ag-zoned parcels and spacious lots make custom builds attractive. Construction financing works differently than standard purchase loans.
Most lenders want builders licensed in California. You'll draw funds in stages as work completes, not all upfront.
Expect stricter scrutiny than purchase loans. Lenders view construction as higher risk until you have a finished asset.
Most construction loans require 20-25% down. Credit scores below 680 make approval tough.
Lenders want detailed build plans, contractor bids, and a realistic timeline. Vague proposals get declined fast.
You'll need cash reserves beyond your down payment. Figure 6-12 months of payments in the bank.
Self-employed borrowers face extra documentation. Two years of tax returns and profit/loss statements are standard.
Local credit unions in Solano County offer construction loans but cap loan amounts lower than national lenders. Their rates can beat bigger banks.
Portfolio lenders give you more flexibility on unconventional builds. They keep loans in-house instead of selling them.
Most construction loans convert to permanent mortgages after build completion. This one-time close structure saves on closing costs.
Shopping 8-10 lenders matters here. Rate differences of 0.5-1% are common because every lender prices construction risk differently.
The draw schedule kills most deals, not the rate. Make sure your lender releases funds quickly or your contractor walks.
Never start a build before loan approval. I've seen borrowers spend $40K on foundation work then get declined.
Construction-to-permanent loans beat separate construction and refi deals. You lock your permanent rate at closing, not 8 months later.
Contingency budgets matter. Add 15-20% to contractor estimates. Lenders hate change orders that blow your approved budget.
Bridge loans work for major renovations on existing homes. Construction loans are for ground-up builds or complete tear-downs.
Hard money makes sense if you can't qualify conventionally. Expect 9-12% rates versus 7-8% for traditional construction loans.
Conventional loans require the home to exist. You can't use them for new construction until the certificate of occupancy is issued.
Jumbo construction loans kick in above standard conforming limits. Dixon builds rarely hit that threshold unless you're building 3500+ square feet.
Dixon's building permits take 4-8 weeks through Solano County. Factor permit timing into your construction schedule before locking a loan.
Well and septic systems are common outside city limits. Lenders require engineered septic plans before approval.
Appraisers use comps from Vacaville and Davis for custom builds. Limited Dixon sales data can complicate valuations.
Ag-designated land needs use permits for residential construction. Solve zoning issues before applying for financing.
Most lenders require 20-25% down. That's higher than purchase loans because construction carries more risk until the home is finished.
Some lenders allow owner-builder arrangements but most require licensed contractors. Expect higher down payments and tighter terms if you're self-contracting.
Figure 30-45 days minimum. Lenders review plans, contractor credentials, and appraise the future value before approval.
Most loans include 12-month build timelines with extension options. Extensions cost fees and may trigger rate adjustments.
No. You make interest-only payments on funds already drawn. Full principal and interest payments start after conversion to permanent loan.
Yes, but the project scope matters. Complete gut rehabs qualify while cosmetic updates don't.
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.