How much money for a downpayment to build a home on my land in California?

mikeandconnie

LoanSafe Member
Jun 14, 2019
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Recently, someone had passed away in my family and I have inherited some land. I am looking to move out to California and build a home on this land. I spoke with someone in the family who works with building codes in our area and he said I can absolutely do this but the finer details will need to be addressed by someone in California who knows the local legal laws and codes. I read that you will need a downpayment placed on the land you own before you can build which is a standing of good faith and upfront local/city fees. How much does this downpayment cost?
 

Jzone

LoanSafe Member
Jun 20, 2017
149
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Recently, someone had passed away in my family and I have inherited some land. I am looking to move out to California and build a home on this land. I spoke with someone in the family who works with building codes in our area and he said I can absolutely do this but the finer details will need to be addressed by someone in California who knows the local legal laws and codes. I read that you will need a downpayment placed on the land you own before you can build which is a standing of good faith and upfront local/city fees. How much does this downpayment cost?
Never heard of that, but never lived in Cali either. Just remember the more you put down, the less your interest rate will be and the less your monthly payments will be. Plan on 20% down to get the best interest rate.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
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San Diego, California
www.loansreduced.com
Hi MikeandConnie,
We offer construction loans here at PrimeLending. Typically 10% down is required (in this case, 10% of construction cost) with a 12 month balloon that will turn into a permanent loan once construction is complete.

Feel free to e-mail me if you have any questions at [email protected]. I may put you directly in touch with our construction division to answer the questions you mentioned above.