Construction Mortgages

Are you looking to build your dream home in Tracy, CA? If so, you may be considering taking out a construction mortgage to finance your project. A construction mortgage, also known as a self-build mortgage, is a type of loan specifically designed to finance the construction of a new home. Unlike traditional mortgages that are based on the current value of a property, construction mortgages are based on the estimated value of the home once it is completed.

One of the main benefits of a construction mortgage is that it allows you to borrow money in stages as the construction progresses. This means that you don’t have to borrow the full amount of the loan upfront, which can be a significant advantage if you’re trying to manage your cash flow during the construction process.

There are two main types of construction mortgages: one-time close and two-time close. A one-time close mortgage is a single loan that covers both the construction and the permanent mortgage, while a two-time close mortgage involves two separate loans. It’s important to weigh the pros and cons of each option to determine which is right for you.

If you’re considering a construction mortgage in Tracy, it’s also important to understand the various types of residential loans that are available. Some of the most common types of residential loans include conventional loans, FHA loans, and VA loans. Each type of loan has its own requirements and benefits, so it’s important to speak with a mortgage professional to determine which loan is best suited for your needs.

At XYZ Mortgage Company, our team of expert mortgage professionals can help guide you through the process of securing a construction mortgage and residential loan in Tracy. We offer a variety of mortgage options and can help you choose the right one for your unique situation. Contact us today to learn more.


“Residential Loans,” California Department of Real Estate, accessed 15 Apr. 2023,