Construction Loans
Financing for building a new home from the ground up or major renovations. Features progressive disbursements during construction with interest-only payments, converting to a permanent mortgage upon completion.
Is This Loan Right for You?
A construction loan is right for you if you want to build a custom home or undertake a major renovation project. These loans provide financing during the construction phase and can convert to a permanent mortgage when building is complete. You will need a minimum credit score of 680, at least 20% down, and a debt-to-income ratio at or below 43%. Loan amounts follow conforming or jumbo limits depending on the program, and you must provide detailed building plans, a licensed general contractor, and a construction timeline. Construction-to-permanent loans combine both phases into a single closing, saving on costs and locking your permanent rate before breaking ground. Interest-only payments during the build period keep monthly costs manageable. Compared to an FHA 203(k) loan limited to existing properties, construction loans finance ground-up builds on primary residences, second homes, and investment properties. Choose a construction loan when you want to build exactly what you envision rather than compromise on existing inventory.
What Are the Construction Requirements?
Min Credit Score
680+
Min Down Payment
20%
Max LTV
80%
Max DTI
43%
Loan Limits
Varies by program; up to conforming or jumbo limits
PMI / MIP
No PMI typically required with 20%+ down
Occupancy
Primary, secondary, or investment property
Key Features
- Progressive disbursements during construction phases
- Interest-only payments during the building period
- Construction-to-permanent loans (single close)
- Stand-alone construction loan options
- Requires detailed building plans and licensed contractor
How It Works
Pre-Qualification & Planning
We review your financials, building plans, construction budget, timeline, and contractor credentials to determine eligibility and structure the best construction loan program.
Application & Plan Review
Submit your full application along with detailed construction plans, specifications, cost breakdown, contractor license and insurance, and the construction timeline.
Underwriting & Approval
The underwriter reviews your financials, the construction plans, the appraised future value, and the contractor. A construction-to-perm loan locks in both your construction and permanent terms.
Draws & Completion
Funds are disbursed in stages as construction milestones are met. Inspections verify progress before each draw. Upon completion, the loan converts to your permanent mortgage.
Estimate Your Payment
Results
This information is not intended to be an indication of loan qualification, loan approval or commitment to lend. Rates, terms, and availability of programs are subject to change without notice.
What Are the Pros and Cons of Construction?
Advantages
- Build your dream custom home exactly to your specifications
- Interest-only payments during construction keep costs lower while building
- Single-close construction-to-permanent loans save on closing costs
- Lock in your permanent mortgage rate before construction even begins
Considerations
- Higher down payment and credit requirements than standard purchase loans
- Construction delays or cost overruns can complicate the process
- Requires extensive documentation including detailed plans and contractor credentials
Frequently Asked Questions
Getting a Construction Loan in the San Gabriel Valley
NetCORE Lending™ is headquartered in Diamond Bar and has been helping borrowers across the San Gabriel Valley secure construction financing since 2015. We serve homebuyers and homeowners in Pomona, Walnut, Rowland Heights, West Covina, Chino Hills, Covina, La Verne, Glendora, San Dimas, Hacienda Heights, and City of Industry — as well as borrowers throughout California.
As a local mortgage broker, we understand the San Gabriel Valley real estate market — from the higher-value properties in Chino Hills and Diamond Bar to the more affordable options in Pomona and West Covina. Our team provides bilingual service in English and Vietnamese and shops 100+ wholesale lenders to find you the lowest available rate on your construction loan.
Call (714) 399-6361 to discuss construction options with a local loan advisor, or get pre-qualified online in 2 minutes.
Also Consider
Explore other loan products that might be a good fit for your needs.
Hard Money
Short-term asset-based financing for real estate investors. Ideal for fix-and-flip projects, bridge loans, short-term rentals, and ground-up construction with fast funding.
DSCR
Debt Service Coverage Ratio loans for real estate investors. Qualification is based on the property's rental income rather than personal income, making it ideal for portfolio builders.
Conventional
A traditional mortgage not insured by the federal government. Ideal for borrowers with strong credit and stable income who want competitive rates and flexible terms.
Jumbo
Financing for high-value properties that exceed conforming loan limits. Ideal for luxury homes and high-cost real estate markets in Southern California.
Ready to Get Started?
Apply online in minutes or call us to speak with a loan advisor about your Construction options.
This information is not intended to be an indication of loan qualification, loan approval or commitment to lend. Rates, terms, and availability of programs are subject to change without notice.
Reviewed by Joann Ton, Loan Officer (NMLS# 1461031) | Last updated: June 2026