Loading
Construction Loans in Fairfield
Fairfield offers more buildable land than most Bay Area cities, making construction loans a practical option here. You'll find parcels in newer developments and teardown opportunities in established neighborhoods.
Construction lending works differently than purchase loans. You draw funds in stages as work progresses, and most lenders require detailed budgets before approval.
Solano County permits move faster than neighboring counties, but lenders still want to see realistic timelines. A six-month build might stretch to nine months once inspections factor in.
Construction lenders want 680+ credit and 20% down minimum. Some require 25% if you're acting as your own general contractor.
You need detailed plans, contractor bids, and a realistic timeline. Lenders won't fund vague renovation ideas or back-of-napkin estimates.
Most programs require 6-12 months of payment reserves since you're covering the construction loan and your current housing. Self-employed borrowers face tighter scrutiny on cash flow.
Fewer lenders offer construction financing than standard mortgages. Big banks typically limit these loans to existing customers with deposit relationships.
Regional lenders and credit unions often provide better terms in Fairfield. They understand local contractors and realistic build costs.
Construction-to-permanent loans eliminate the need to refinance after completion. You lock your permanent rate upfront, which matters in rising rate environments.
Hard money lenders fill gaps for borrowers who can't qualify conventionally. Expect 10-12% rates and 12-month terms maximum.
Most Fairfield construction deals fail on budget, not credit. Borrowers underestimate soft costs like permits, engineering, and utility connections.
Choose your contractor before applying. Lenders want to see their license, insurance, and references. Unlicensed contractors mean automatic denials.
Land loans and construction loans are separate products. If you need to buy the lot first, expect to close two loans or bring enough cash to own the land outright.
Interest reserves get built into your loan. You're not making monthly payments during construction—interest accrues and gets paid at conversion or completion.
Bridge loans work for buying before selling but don't cover construction costs. You need actual construction financing for ground-up builds.
Conventional loans only work after the house is complete and has a certificate of occupancy. They can't fund the build itself.
Jumbo construction loans exist for higher-end projects but require 25-30% down. The approval process takes 45-60 days versus 30 days for standard construction loans.
Hard money makes sense for fix-and-flip projects under 12 months. For owner-occupied builds lasting 6+ months, construction-to-permanent loans cost less overall.
Fairfield sits between expensive Bay Area markets and affordable Central Valley pricing. Construction costs run $200-$300 per square foot depending on finishes.
Solano County requires separate permits for foundation, framing, electrical, plumbing, and final inspection. Budget time and fees for each milestone.
Water and sewer connection fees vary widely by neighborhood. Some areas require $15,000+ in impact fees before you break ground.
Wind is a legitimate concern in Fairfield. Lenders may require additional engineering for elevated structures or large roof spans.
Expect 30-45 days once you submit complete plans and contractor bids. Incomplete applications add weeks to the timeline.
Some lenders allow it with 25% down and construction experience. Most require licensed contractors to protect their investment.
You cover overruns with cash or the project stops. Lenders won't increase the loan midstream without major equity injections.
Not always. Some lenders include land purchase in the construction loan if you're buying and building simultaneously.
Lenders release funds at completion milestones—foundation, framing, rough mechanicals, drywall, completion. An inspector verifies work before each draw.
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.