Question 1

What's the minimum credit score for a construction loan in Patterson?

Accepted Answer

Most lenders require 680+ FICO for conventional construction financing. Some portfolio lenders will work with 660–680 if you have compensating factors like a large down payment or strong income relative to the loan amount.

Question 2

How much do I need to put down on a construction loan?

Accepted Answer

Construction loans typically require 15–25% down. The exact percentage depends on your credit, the builder's experience, and the lender's guidelines.

Question 3

How long does a construction loan take to close?

Accepted Answer

Approval and closing on the construction loan itself takes 30–45 days. The actual construction phase runs 12–24 months depending on the project scope. At completion, you close on the permanent mortgage, which adds another 15–30 days.

Question 4

Can I use a construction loan if I'm building under $832,750?

Accepted Answer

Yes. The $832,750 conforming limit for 2026 applies to the total project cost. As long as your land plus construction stays under that amount, you qualify for conventional construction financing at standard rates.

Question 5

What happens after construction is finished?

Accepted Answer

The construction loan converts to a permanent 30-year mortgage. You'll close a second time on the permanent loan, which replaces the construction financing. Interest rates on the permanent loan are typically lower than the construction rate.

Construction Loans in Patterson: Build Your Home in Stanislaus County