The Premier Private Money Lender for California (New Construction) Real Estate Investors

A construction loan in California works differently from a traditional mortgage or permanent mortgage in a few important ways. Rather than disbursing the full loan amount upfront, construction loans release funds in stages — called draws — as specific phases of the build are completed and verified. During the construction period, borrowers typically make interest-only payments on the funds that have been drawn rather than the full loan amount, which keeps monthly payments lower while the project is underway. Once construction is complete, the loan is either paid off through a sale of the property or refinanced into a permanent mortgage or long-term rental loan.

Getting a construction loan in California through Lima One Capital starts with a conversation with one of our loan specialists. From there, you'll need to provide documentation on the property — including confirmation that the land is shovel-ready and fully entitled — along with a detailed construction budget and plans. Lima One evaluates borrowers based on credit score, liquidity, and prior construction or real estate investment experience rather than personal income or tax returns, which makes our approval process significantly more accessible for self-employed builders and experienced developers than traditional mortgage lenders.

Traditional banks, credit unions, and private money lenders all offer construction loans in California, but they vary significantly in their requirements, speed, and suitability for investment-focused developers. Traditional banks and conventional mortgage lenders typically require extensive personal income documentation, longer approval timelines, and often struggle to underwrite the complexity of ground up construction projects. Private money lenders like Lima One Capital are generally a stronger fit for real estate investors and home builders because our underwriting is built around investment fundamentals rather than personal income thresholds, our draw process is faster, and our team has hands-on construction financing expertise. For builders and developers in Southern California and beyond, Lima One offers a combination of capital stability, speed, and investor-aligned underwriting that traditional mortgage lenders simply aren't designed to deliver.

Lima One Capital requires a minimum credit score to qualify for a new construction loan in California. Beyond credit score, we also evaluate your liquidity and your experience as a builder or real estate investor, because in construction lending, the ability to execute a project matters as much as the numbers on a credit report. Borrowers with stronger credit profiles, greater liquidity, and a track record of completed construction projects will generally access better rates and higher leverage. If you're unsure whether your profile qualifies, the best step is to connect with one of our loan specialists for a direct assessment.

A construction to permanent loan — sometimes called a construction to perm loan — is a financing structure that covers the construction period financing and the long-term permanent mortgage into a single loan product. During the construction phase, the loan functions like a standard construction loan with interest-only draws. Once the build is complete, it can easily be converted into a permanent mortgage without requiring the borrower to go through a second underwrite. For Southern California home builders and developers who plan to hold the completed property rather than sell it, a construction to perm structure can simplify the financing process and reduce closing costs. Lima One Capital's loan specialists can walk you through whether this Build2Rent® structure makes sense for your specific California project and exit strategy.

A traditional mortgage is designed to finance the purchase of an existing, completed property. A new construction loan, by contrast, is structured to finance the building process itself, disbursing funds in stages as construction progresses rather than in a single lump sum at closing. Traditional mortgages are underwritten based heavily on the completed value of the property and the borrower's personal income, while construction loans from private money lenders like Lima One Capital are evaluated based on the project's feasibility, the builder's experience, and the borrower's liquidity and credit profile. For real estate investors and home builders in California, construction loans are the right tool for ground up projects, while traditional mortgages or DSCR rental loans become relevant once the build is complete and the property is either being sold or converted to a long-term rental.