Are you building a new home in California or is your existing home in need of repair?

If you need any type of a major remodeling job, you will probably need a construction loan.  If you are building a new home in California, you will almost certainly need a construction loan.

We specialize in construction loans in the California.  The construction loan requirements for California vary from lender to lender.  Construction loans are short term loans, usually set for as long as the construction project will take to complete.  In California, this time period is usually about 6-12 months.

To be considered for a California construction loan, the borrower will need to have an estimate of the costs of the construction project as well as the length of time needed to complete the construction.  It will also be necessary to demonstrate your ability to repay the construction loan within the required term.  Land or other real estate can be used as equity to determine the total amount California construction lenders will lend for your specific project.  California real estate is generally the only collateral used for construction loans, but you should check with your lender if you have other assets that would be useful to the construction lender when considering your construction loan request.  Credit will usually be considered, but this is not the defining factor in determining whether a construction loan will be issued or not. Collateral and definitive means to pay the loan back are often much more important factors to the construction lender when considering your request.

Estimating the construction costs and financing can be confusing for most homeowners.  Determining the exact costs for a large project can be overwhelming to the construction borrower.  A team of lenders, investors and contractors with years of construction experience can help walk you through the entire process and help to breakdown the numbers and figure out the entire costs of the project, how long construction should take to complete the job as well as determine if you have the means to repay the loan amount in the specified time.  Generally, time may be added to the estimated time period to compensate for any delays or unforeseen circumstances that can cause your construction project to take longer than initially anticipated.

After your construction loan has been approved, the funds will be paid out over the course of the job.  The initial funds usually cover the construction materials and pay the California contractors that are working on the construction project. The payments on the construction loan are disbursed by the lender through predetermined and agreed upon timeframes.  The remaining balance will be paid when the construction has been completed and a Certificate of Occupancy has been obtained.

Construction loans are usually simple to obtain if all the prerequisites are met and are satisfactory to the California lender.

It is time to get started building your California home.  Call Beau Eckstein today 925-852-8261.

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