Loading
Loading
Tehama is rural Tehama County — land is available, existing inventory is thin. Building makes more sense here than fighting for a handful of listings.
A construction loan funds your build in stages. Once complete, it converts to a permanent mortgage. That two-phase structure fits Tehama's build-to-own reality.
680 (typical)
Min Credit Score
20–25%
Down Payment
Up to 12 months
Build Phase
Licensed & insured
Contractor Required
6 months typical
Reserves Required
Construction Loans in Tehama
Most lenders want a 680+ credit score for construction loans. Underwriting is stricter than a standard purchase — you're borrowing against something that doesn't exist yet.
Expect to put 20-25% down. Lenders want skin in the game before cutting checks to your contractor. Reserves matter too — most want 6 months of payments set aside.
Local decision guide
Use this guide to connect construction loans eligibility, lender expectations, and local market factors before comparing payment options in Tehama.
Tehama is rural Tehama County — land is available, existing inventory is thin. Building makes more sense here than fighting for a handful of listings.
A construction loan funds your build in stages. Once complete, it converts to a permanent mortgage. That two-phase structure fits Tehama's build-to-own reality.
Most lenders want a 680+ credit score for construction loans. Underwriting is stricter than a standard purchase — you're borrowing against something that doesn't exist yet.
Most retail banks shy away from rural construction deals. Tehama County triggers extra scrutiny — appraisers have fewer comps, which makes lenders nervous.
Wholesale lenders are where this gets done. We work with 200+ of them and know which ones are comfortable with Tehama County builds and rural lot valuations.
Get your contractor approved before you apply. Lenders vet the builder as hard as they vet you. An unlicensed or unvetted contractor kills the deal fast.
Lock in your plans and budget before closing. Change orders mid-build blow up loan-to-value ratios. Lenders hate surprises — your budget needs a real contingency buffer.
A bridge loan moves faster but carries higher rates and short terms — good for land acquisition, not a full build. Hard money is similar: fast access, expensive capital.
Conventional construction-to-permanent is the workhorse here. You close once, build, then convert. No second appraisal, no second closing. That structure wins for most Tehama borrowers.
Tehama County has specific zoning rules for rural parcels. Septic, well, and fire clearance requirements add time and cost. Build your permit timeline into your loan schedule.
Appraisals here rely on distant comps. That can compress your appraised value versus build cost. Talk to us before you buy land — loan feasibility starts with the numbers on that lot.
Yes, but lender options narrow in rural areas. Wholesale lenders handle this more often than retail banks.
Funds release in stages tied to build milestones. The lender inspects progress before each draw is approved.
Yes. Lenders require a licensed, insured contractor. Owner-builder programs exist but are rare and harder to qualify for.
You cover overages out of pocket — the loan amount is fixed at closing. Build in a 10-15% contingency from the start.
Typical construction phase is 12 months. Rural permit delays can push that — confirm your lender allows extensions.
Most programs start at 680. Some lenders go lower with stronger compensating factors like a large down payment.