© SAN DIEGO SAN DIEGO · CA
SAN DIEGO CONSTRUCTION LOANS
Ground-up construction financing for experienced San Diego builders: up to 80% of the lot, the build and the interest reserve, released in draws through every stage.
CALL OR TEXT US (619) 617-2797
- GOOGLE RATING 150+ REVIEWS
- CLOSED LOANS SINCE 2022
- LOANS FUNDED ACROSS 46 STATES
- VETERAN OWNED Company NMLS 1416824 · Branch NMLS 2554618
Building in San Diego County is a land-scarce, permit-heavy business. The projects are knock-down rebuilds on lots that already hold a house, small-lot and 2 to 4 unit builds where the zoning allows them, and new homes on the remaining lots at the edges of the county. What they share is a long stretch before anything can be sold or rented, and a lender who has to fund it in stages.
Loan Goat's ground-up construction loan funds up to 80% of the cost of the lot, the build and the interest reserve, on 12 to 18 month terms, with draws released through each stage of construction and interest charged only on the money drawn. It asks for a 600 minimum FICO and two completed ground-up projects, and covers single family homes, condos and townhomes, and 2 to 4 unit buildings. Construction is priced per project, and there is no prepayment penalty.
Below are the published terms, how a San Diego construction loan is underwritten and drawn, what the permit timeline means for your term and what builders ask before they call (619) 617-2797.
© THE TERMS SAN DIEGO · CA
SAN DIEGO CONSTRUCTION LOANS: THE PUBLISHED TERMS
| PROGRAM | RATES | LEVERAGE UP TO | TERMS | LOAN AMOUNTS |
|---|---|---|---|---|
| GROUND-UP CONSTRUCTION | Priced per project | LTC 80% of lot, build and interest reserve | 12 to 18 months | Above $4,000,000 by special approval |
Starting rates for qualified borrowers, from the published terms cards. Points and fees are quoted on the Letter of Intent. Rates are subject to change without notice and are not a commitment to lend.
REQUIREMENTS · GROUND UP CONSTRUCTION
- Minimum FICO
- 600
- Property Type
- SFR, Condo/Townhome, 2-4 Units
- Documentation
- Application, SREO, Proof of Funds
- Experience
- 2 Ground-Up Projects
BENEFITS
- Flexible draws throughout construction stages
- Quick close
- No prepayment penalties
- Minimal documentation required
- Non-Dutch: interest calculated on drawing balance
- Interest reserve available
© SAN DIEGO SAN DIEGO · CA
HOW A CONSTRUCTION LOAN WORKS IN SAN DIEGO
Underwriting starts with the plans, the budget and the builder. Bring the approved or nearly approved plan set, a line-item budget with a contingency, the schedule and your record: the program asks for two completed ground-up projects. The loan is sized on cost, up to 80% of the lot, the build and the interest reserve, and the documentation is short: an application, a schedule of real estate owned and proof of funds.
Draws follow the build. The money for each stage is released as that stage is completed and verified, and interest is charged only on what has been drawn, so the early months cost less than the later ones. An interest reserve can carry the payments while the property earns nothing.
In San Diego the clock that matters most is the permit clock. Inside the city, plans go through the Development Services Department, and a site in the Coastal Overlay Zone can need a coastal development permit before the building permit. Start the loan conversation when the plans are close to approval, not when the lot closes, so the 12 to 18 month term is spent building rather than waiting.
Accessory dwelling units are the other San Diego question. California law allows ADUs, and junior ADUs inside an existing home, on most residential lots. A detached ADU built new is closer to ground-up construction and can go on the construction loan; a garage conversion or an attached addition on a property you already own is usually financed against the equity you hold, with a bridge loan or a second mortgage. Once the unit is built and rented, its income counts on our rental DSCR loan.
THE PROCESS
- Complete your application
- Submit required documentation
- Sign your Letter of Intent
- We process and close your loan in 5-7 days
© GOOGLE REVIEWS 5.0 GOOGLE RATING · 150+ REVIEWS
SAN DIEGO BORROWERS, IN THEIR WORDS
-
I referred my friend over to Milad and while they weren't ready to do a fix and flip just yet, Alex told me Milad was the first lender that actually explained the process, how constructions loans work, and answered all their questions. She...
MELANIE SANCHEZ -
This is my first experience dealing with Milad Shamoun & Blair Noble at Loan Goat. Very professional, accommodating and focused on obtaining results. Over my years I have dealt with various types of Intuitional and Private Lenders. Loan Goat stacks up with the best.
RAYMOND HERRERA -
The team at Loan Goat literally saved my life. I was in such a bind and didn't think I had anywhere else to turn. Even with my extensive knowledge in this field I felt I was going to lose everything. The team has insight and plans I never...
ELIJAH SCHOLER -
I referred my friend over to Milad and while they weren't ready to do a fix and flip just yet, Alex told me Milad was the first lender that actually explained the process, how constructions loans work, and answered all their questions. She...
MELANIE SANCHEZ -
This is my first experience dealing with Milad Shamoun & Blair Noble at Loan Goat. Very professional, accommodating and focused on obtaining results. Over my years I have dealt with various types of Intuitional and Private Lenders. Loan Goat stacks up with the best.
RAYMOND HERRERA -
The team at Loan Goat literally saved my life. I was in such a bind and didn't think I had anywhere else to turn. Even with my extensive knowledge in this field I felt I was going to lose everything. The team has insight and plans I never...
ELIJAH SCHOLER
© QUESTIONS SAN DIEGO · CA
SAN DIEGO CONSTRUCTION LOANS, ANSWERED
Straight answers to what borrowers ask before they call. Questions we answer elsewhere link to the page that owns them.
-
Ground-up construction is priced per project, because the rate depends on the plans, the budget, the builder's record and the leverage. Interest is charged only on the drawn balance, an interest reserve is available and there is no prepayment penalty. Points and third-party costs are set out on the Letter of Intent.
Read the pricing guide -
Up to 80% of the total cost of the lot, the build and the interest reserve, on a 12 to 18 month term. You bring the rest, plus closing costs.
-
Yes, the ground-up loan asks for two completed ground-up projects. If you are building your record, talk to us about the project before you buy the lot; a fix and flip, which allows first-time flippers, is another way to start.
San Diego fix and flip loans -
Start the conversation early, but the build money depends on approved plans and permits. In the City of San Diego those come from the Development Services Department, and coastal sites can also need a coastal development permit. Bring the plan set, the budget and the expected permit date so the closing can be timed to the permit.
-
Yes. A detached ADU built new can go on the ground-up construction loan; a conversion or an addition on a property you already own is usually financed against your equity with a bridge loan or a second mortgage. Once the ADU is built and rented, its income is permitted on our rental DSCR loan. Tell us about the project and we will route it.
San Diego DSCR loans -
The budget is split into stages. When a stage is complete and verified its money is released, and interest starts on that money only. A realistic draw schedule agreed with your builder before closing is the best protection against a stalled job.
Draws and holdbacks explained -
You sell, or you keep the property and refinance it. A finished rental can move into a rental DSCR loan at up to 80% LTV on 30 or 40 year fixed terms, qualified on the rent.
DSCR calculator
© KEEP READING SAN DIEGO · CA
BEFORE YOU APPLY
© WHERE WE LEND SAN DIEGO · CA
SAN DIEGO, OUR HOME MARKET.
- CLOSED LOANS SINCE 2022
- LOANS FUNDED ACROSS 46 STATES
- Lending footprint, 46 states
- Home markets: California and Arizona
- San Diego headquarters
© GET A QUOTE SAN DIEGO · CA
SUBMIT A LOAN REQUEST
Please fill the form below and a lending advisor from our firm will reach out.
Or just give us a call now
(619) 617-2797
