Land Loans in California
Construction loans require the new homeowner builder to own land and California Construction Loans provides the lending sources to obtain the best land loans.
Land Loan Overview
Short term financing for a residential lot that will be built on within the next 3 years.
Loan Purpose
Purchase, Rate & Term Refinance
Products/Pricing
Fixed Rate Land Loans
Processes Modified/Standard (Full doc).
Occupancy
Intended for primary or second home construction.
Property Type
Zoned residential. Roads, utilities, water and sewer must be available to the site.
Term
36 months. A 6 month extension may be available.
LTV/Loan Amount/Credit Score
| LTV | Loan Amount | FICO |
| 80% | $500,000 | >=680 |
| 75% | $700,000 | >=680 |
| 70% | $1,000,000 | >=680 |
| 65% | $1,500,000 | >=700 |
| 80% | Conforming | 680-719 |
| 75% | $500,000 | 680-719 |
| 70% | $700,000 | 680-719 |
| 65% | $1,000,000 | 680-719 |
Reserves
6 months PITI
Total Debt Ratios
45% back end.
Appraisals
2 appraisals are required for loan amounts greater than $1,000,000.
Fees
$550 commitment fee.
Customer Loyalty Discount
If borrowers refinance their Lot loan to a newConstruction Loan using their original mortgage broker that assisted with the lot loan, they can receive a credit towards their construction loan closing costs. Credit equal to .500% of the lot loan amount. To be eligible for this discount, lot loan must have a minimum of 12 months seasoning.
