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Construction Loans in Exeter
Exeter's rural setting attracts buyers who want custom homes on larger parcels. Construction loans let you build exactly what you need instead of settling for existing inventory.
Most Exeter builds are single-family homes on agricultural land or in smaller subdivisions. Lenders treat rural construction differently than suburban tract builds.
Building in Tulare County means longer timelines for permits and inspections. Your construction loan needs to account for these delays without penalty.
You need 20-25% down for most construction loans. Lenders want to see you have skin in the game before funding a build.
Credit scores of 680+ work for standard programs. Your builder's track record matters as much as your finances.
Expect detailed scrutiny of your construction budget and timeline. Lenders release funds in stages, not upfront.
If the land is paid off, some lenders count that equity toward your down payment. This helps if cash is tight.
Not all lenders do construction loans in rural California. Many pull back from ag-zoned properties or parcels over 5 acres.
Local community banks often have better Exeter knowledge than national lenders. They understand septic systems, well water, and ag exemptions.
Construction-to-permanent loans save you from refinancing after completion. You lock your rate once instead of gambling on future rates.
Hard money lenders fill gaps when you need fast funding or have credit issues. Rates run 9-12% but close in weeks, not months.
I see borrowers underestimate construction costs by 15-20%. Lenders won't fund overruns, so pad your budget or risk stopping mid-build.
Your builder's license and insurance matter more than you think. One uninsured sub can kill a deal even with perfect borrower credit.
Interest-only payments during construction keep costs manageable. You only pay on drawn funds, not the full loan amount.
Have a backup plan if you sell your current home to fund the build. Market delays can leave you homeless mid-construction.
Bridge loans work if you're selling a home to fund the build. You tap existing equity while waiting for your sale to close.
Conventional loans cost less but require finished homes. Construction loans charge 0.5-1% higher rates for the build risk.
Hard money moves fastest when you need to lock land or start quickly. Rates hit double digits but you can refinance to conventional later.
Jumbo construction loans apply when your build exceeds conforming limits. Exeter doesn't see many, but luxury custom homes need them.
Tulare County building departments move slower than urban areas. Factor 8-12 weeks for permits before breaking ground.
Well and septic requirements add costs that subdivision buyers never see. Lenders need proof of water rights and perc tests.
Exeter's ag economy means some lenders worry about resale if you default. Choose a builder with local comps to ease lender concerns.
Fire insurance costs have spiked in rural California. Get quotes before locking your loan to avoid payment shock at closing.
Most run 12-18 months to cover permitting and build time. Rural Tulare County builds often need the longer timeline given permit delays and weather.
Some lenders allow owner-builders but charge higher rates or require more down. You'll need to prove construction experience and carry proper insurance.
You pay overruns out of pocket or halt construction. Lenders don't increase loans mid-build, so accurate budgeting matters from day one.
Most lenders prefer you own it, but some do land-plus-construction combo loans. Expect to put 25-30% down for combined financing.
They verify residential use is allowed and check for Williamson Act contracts. Some lenders avoid ag land entirely, so broker access to multiple lenders helps.
Construction-to-permanent loans lock your rate upfront. You avoid refinancing and rate risk, but pay slightly more during the build phase.
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.