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Modesto sits in the heart of Stanislaus County, where land is still available and buildable lots exist at prices that make new construction pencil out.
If you can't find what you want on the MLS, building is a real option here. Construction loans make that possible without paying a premium for someone else's choices.
680 preferred
Min Credit Score
20–25% typical
Down Payment
6–12 months
Build Window
Licensed & insured
Builder Requirement
One-time-close available
Closing Option
Construction Loans in Modesto
Most lenders want a 680 or higher credit score for construction loans. Some go down to 620, but your rate takes a hit and reserve requirements go up.
Expect a 20–25% down payment. Lenders treat construction as higher risk. Strong reserves and a solid builder contract help your file look clean.
Local decision guide
Use this guide to connect construction loans eligibility, lender expectations, and local market factors before comparing payment options in Modesto.
Modesto sits in the heart of Stanislaus County, where land is still available and buildable lots exist at prices that make new construction pencil out.
If you can't find what you want on the MLS, building is a real option here. Construction loans make that possible without paying a premium for someone else's choices.
Most lenders want a 680 or higher credit score for construction loans. Some go down to 620, but your rate takes a hit and reserve requirements go up.
Not every lender does construction loans. Many banks and credit unions offer them, but their programs differ significantly on draw schedules, inspections, and rate locks.
Wholesale lenders through a broker often have more flexible programs than retail banks. We shop across 200+ lenders to find who's actually competitive on construction in Stanislaus County.
The biggest mistake borrowers make: locking a builder before locking a lender. Get your financing lined up first. Builders want proof of funds before they'll hold a lot.
One-time-close construction loans are worth a serious look. You close once, lock your permanent rate upfront, and skip a second closing when the build is done. That saves real money.
A bridge loan lets you tap existing equity fast, but it's short-term and expensive. Construction loans are purpose-built for building — longer terms, structured draws, and a clear path to permanent financing.
Hard money construction loans exist and close fast, but rates are steep. They work when speed is the only goal. For a primary residence build in Modesto, a conventional construction loan is almost always the better move.
Stanislaus County permitting timelines affect your construction schedule. Factor county permit delays into your loan timeline — some lenders have strict completion deadlines.
Modesto's Central Valley climate means construction moves faster here than coastal markets. That's an advantage when your lender's clock is ticking on the build window.
You draw funds in stages as the build progresses. After completion, the loan converts to a permanent mortgage.
Most lenders want 680 or higher. Scores below that narrow your options and raise your rate.
Yes. Major renovation projects can qualify. The scope needs to meet the lender's definition of substantial construction.
You close once for both the construction phase and permanent mortgage. It saves on closing costs and locks your final rate early.
Yes. Nearly every lender requires a licensed, insured general contractor. Owner-builder loans exist but are rare and harder to qualify for.
Construction phases usually run 6 to 12 months. Lenders set a hard completion deadline — confirm this before you sign.