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Cotati is a small city with limited resale inventory. Building new gives you options the MLS won't.
Sonoma County land can be found at reasonable price points compared to coastal markets. That makes construction financing worth exploring here.
680+
Min Credit Score
20–25%
Down Payment
Licensed & Approved
Contractor Requirement
6–12 Months
Typical Build Period
Interest-Only Draws
During Construction
Construction Loans in Cotati
Most lenders want a 680+ credit score for construction loans. Some go higher — 700 or 720 is common for the best terms.
Expect a 20-25% down payment. Lenders see construction as higher risk. Rates vary by borrower profile and market conditions.
Local decision guide
Use this guide to connect construction loans eligibility, lender expectations, and local market factors before comparing payment options in Cotati.
Cotati is a small city with limited resale inventory. Building new gives you options the MLS won't.
Sonoma County land can be found at reasonable price points compared to coastal markets. That makes construction financing worth exploring here.
Most lenders want a 680+ credit score for construction loans. Some go higher — 700 or 720 is common for the best terms.
Most big banks offer construction loans, but their programs are rigid. Terms, draw schedules, and approval criteria vary widely.
Wholesale lenders often have more flexible programs. We shop across 200+ lenders to find the right construction product for your project.
One-time-close construction loans are underrated. You lock the rate and terms once — no second closing when the build finishes.
The builder approval process trips up a lot of borrowers. Your contractor must be licensed and often must submit financials. Get that done early.
Bridge loans work if you own land and need short-term funds to start. Construction loans are the better long-term structure.
Hard money moves faster but costs more. If your timeline allows, a conventional construction loan will save you significantly on rate and fees.
Sonoma County has specific permitting and zoning requirements. Delays there can affect your draw schedule and loan timeline.
Cotati sits in a fire hazard zone designation area. Some lenders add conditions or require specific insurance before funding construction.
Most lenders require 680 or higher. Better scores get better rates — rates vary by borrower profile and market conditions.
Yes. Owned land can often count toward your equity requirement. It reduces how much cash you need at closing.
It combines the construction phase and permanent mortgage into one loan. You close once and avoid a second set of closing costs.
Funds are released in stages as work is completed. An inspector typically verifies progress before each draw is approved.
Yes, but usually interest-only on the funds drawn so far. Full mortgage payments start after construction is complete.
It can. Some lenders require fire insurance commitments before funding. Discuss this upfront so it doesn't delay your closing.