California Loan Options

California Construction-to-Permanent Loans (Single Close Transactions)

At Pacific Home Loans, our Construction to Permanent Loans streamline the homebuilding process by combining interim construction financing with permanent mortgage financing into a single-close transaction. This efficient loan structure eliminates the need for multiple closings, reducing paperwork, fees, and delays.

Key Benefits:

  • One-time closing for both construction and permanent financing.
  • Reduced costs and simplified paperwork.
  • A seamless transition from construction to move-in.
  • Peace of mind while focusing on building your dream home.

Whether you’re constructing a custom home in Los Angeles, a coastal retreat in San Diego, or a countryside estate in Napa Valley, Pacific Home Loans is here to provide a smooth and stress-free financing experience.

Ready to build your dream home? Contact Pacific Home Loans today!

Apply Online to Get Started

Construction-to-Permanent Loans

Financing your custom home build in Nevada is typically a 2-step process. However, Pacific Home Loans will consider financing the land acquisition, construction expenses, and the permanent loan all in one loan, on a case-by-case basis.

Step 1: Land Acquisition

For example:
Cost                                     $500,000
– 25% down                       $ 125,000
Land Loan Amount         $375,000

Land Loans available with 1-year, 2-year, and 3-year term. You should choose a land loan term that will give you enough time to design your home and to select a building contractor.
Step 2: Get Pre-Qualified for a Construction to Permanent Loan:

Once you have a construction budget in place, a PHL loan officer will pre-qualify you for one of our Nevada construction to permanent loans. This specialized financing option is designed to pay off your land loan, cover construction expenses, and seamlessly transition into the permanent loan of your choice upon the completion of construction.

If you financed your land purchase with Pacific Home Loans in Nevada, the process of transitioning to a construction to permanent loan is simplified. You’ll only need to update your file when you’re ready to proceed, ensuring a seamless transition and continued support throughout your financing journey.

How the deal gets structured:
Construction cost             $500,000
Land cost                            $500,000
Total                                   $1,000,000
$1,000,000 cost x 80% = $800,000 Loan amount
Down payment 20% = $200,000
Cash needed to close Construction-to-Permanent loan:
Down payment                 $200,000
–Equity in land                $   125,000 See step-1 above
Total cash to close           $    75,000 + closing costs

Construction Package Checklist:

  1. General Contractor: Retaining the services of a licensed general contractor is required for every construction loan. Exceptions for owner builders will be considered for a licensed contractor.
  2. Construction Contract: The contract, executed by the contractor and the borrower, is an agreement outlining the project cost, responsibilities assigned to the contractor and borrower, and the disbursement schedule.
  3. Plans and Specifications: Plans and specifications used for appraisal purposes must exactly match those submitted to the County’s Building Department. Certification by the contractor is required.
  4. Payment and Performance Bond: A payment and performance bond ensures completion of the construction project to satisfaction. It must be issued by a bonding company acceptable to the lender.
  5. Building Permit: A copy of the building permit issued by the County must be provided.
  6. Property Inspections: Property inspections occur at each disbursement to track construction progress. The project must meet the timeline goals before fund release.
  7. Notice of Completion: Upon receiving a notice of completion from the bonding company, your loan will convert to permanent financing.
  8. Loan Terms: The permanent loan term is decided and locked in at loan submission. Your rate during construction is your permanent rate and is interest-only.

Residential Construction to Permanent Loan:

  • Build a custom home
  • Build a custom Ohana (attached or detached accessory dwelling)
  • Build a custom home and Ohana
  • Loan can be considered for a purchase or refinance
  • Loan amounts up to $4,000,000

Permanent Loan: The construction loan automatically rolls into a permanent loan upon receipt of the notice of completion. For example, with a 6-month construction period, you’ll have a 354-month amortization on the permanent loan. Construction periods range from 6 to 18 months.

Pacific Home Loans offers several California construction to permanent loans—available statewide—to choose from, providing tailored solutions for your construction financing needs.

Information and self-help tools are provided for your independent use and are not intended to provide investment advice. We cannot and do not guarantee loan eligibility or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to speak with one of our experienced loan officers for a loan eligibility analysis and custom rate and payment estimate.

Call Us Today

We are here for all of your Mortgage Needs!