California Construction Lenders for Residential Investment Property
Are you building a residential investment property in California? On this page you'll find a list of private construction lenders for ground-up projects throughout the Golden State. The maximum loan-to-completed value (LTCV) for most lenders in California is 70%. You typically need to contribute 20%-25% of the project costs and have some cash reserves. Development experience is always required. Most lenders will require the project to be fully entitled and shovel ready. A small percentage of lenders will consider land acquisition and/or horizontal financing. The lenders listed here can fund a single home build, or a development with multiple homes. We have a separate page for lenders that offer ground-up construction financing for commercial properties.California is a large state, and many lenders only consider construction loans in particular metro areas. Select a region to filter the lender list:
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PrideCo Loans Inc.
Family Office Hard Money Lender for Multifamily and Residential Investment Properties
Karpe Real Estate Center
Private Lending for Central California Real Estate - Bakersfield, Fresno, Central Valley, Sacramento | Est. 1926
Funded Residential Construction Loans in California
Private Construction Loan for Spec Home Build in Paso Robles, California
$625,000
Karpe Real Estate Center, a direct private lender for Central California real estate, funded a $625,000 1st lien position ground-up construction loan for a single-family residence in Paso Robles, California. We funded 90% of the $420,000 construction budget, while the Borrower contributed 10% cash at closing. We paid off a previous loan balance of $195,000. The completed value was estimated at $950,000 so our loan-to-completed value was 65%. This is an existing Borrower that has completed multiple projects with Karpe. The funds were sent to a funds control company, and the Borrower plans to build and sell in less than a year. They have already completed a home in the same subdivision. The subject property is approximately 12,400 square feet. The interest rate was 10.99%. The loan term was set at 12 months. This private construction loan was funded in July 2023.
Ground-Up Construction Loan for 4 Single Family Homes in Chowchilla, California
$995,000
Karpe Real Estate Center, a direct private lender for Central California real estate, funded a $995,000 1st lien position ground-up construction loan for 4 single-family homes in Chowchilla, CA. We funded 100% of the $915,000 construction budget. The completed value was estimated at $1,600,000 so our loan-to-completed value was 62%. The Borrower was a repeat customer that had completed over 30 homes with Karpe Real Estate financing. They had excellent credit. The Borrower took care of all the soft costs using their own funds, and our loan was used for 100% of the hard vertical construction costs, plus the payoff of an existing land lien. They plan on being done with the 4 homes in 6 months and full repayment within a year. The Borrower plans to sell all 4 homes upon completion of the vertical construction. The interest rate was 11%. The loan term was set at 24 months. This ground-up construction loan was funded in May 2023.
Private Construction Loan for Single-Family Home in Paso Robles, California
$600,000
Karpe Real Estate Center, a direct private lender for Central California real estate, funded a $600,000 1st lien position ground-up construction loan for a single-family residence in Paso Robles, CA. We funded 95% of the $600,000 construction budget, while the Borrower contributed 5% at closing. The completed value was estimated to be $1,000,000 so our loan-to-value was 60%. The Borrower had excellent credit and was an experienced home builder in California. They purchased several finished lots in a subdivision and looked to Karpe for vertical construction funding. The Borrower had 100% of the hard costs funded and they completed the home within the 12-month loan term, selling and moving on to the next project. We charged 4% origination points and the broker earned a $24,000 commission. The interest rate was 9.10%. The loan term was set at 12 months. This SFR ground-up construction loan was funded in April 2022.