MBReviewed by Mike Basti, Mortgage Broker & Founder · NMLS #377740
Quick Answer
You're generally eligible if you have a detailed project (plans + budget), a licensed, insured builder the lender approves, 680+ credit, and the equity — 20%+ for a custom home, 25–35% for a developer project. FHA/VA and owner-builder options exist. See Requirements.
Who qualifies
✓ Strong fits
- Homeowners building custom on their lot
- Buyers doing land + build
- ADU builders adding a unit
- Experienced developers with a track record
- Owner-occupiers (SBA 504 for commercial)
✗ Weak fits
- No licensed/insured builder lined up
- Incomplete plans or budget
- Thin equity below the LTC/equity floor
- Site without permits or entitlements
- Projects that fail the completed-value / DSCR test
The builder is half your eligibility: Lenders underwrite the builder almost as closely as they underwrite you. A general contractor with a current California license, active liability and workers'-comp coverage, a bond, and a clean track record makes your file far stronger — draws go smoothly and approval comes faster. A builder who bristles at inspection requirements or "forgot" to renew insurance is a red flag that can sink an otherwise good project. If you're choosing a builder, vet them like the lender will; if you already have one, we'll confirm they clear before you're committed. See how to strengthen your file →
Eligible projects & property types
| Project | Eligible? |
|---|---|
| Custom single-family home | Yes — the classic |
| ADU / accessory unit | Yes |
| Townhome / condo | Yes |
| 1–4 unit & multifamily | Yes — developer track |
| Mixed-use | Yes, with plan & experience |
| Industrial / pre-leased build-to-suit | Easiest to finance |
| Spec retail / hospitality | Hardest — more equity |
The builder question — GC vs owner-builder
- Licensed GC (preferred) — best terms, smoother draws, lender-approved.
- Owner-builder — more control, but higher scrutiny and rates; you take on GC duties.
- Design-build firm — one contract for design + construction; lenders like the clarity.
What's not eligible
- No vetted builder — unlicensed/uninsured contractors don't clear.
- Incomplete package — missing plans, budget, or permits.
- Thin equity — below the LTC/equity floor (test it in the calculator).
- Weak takeout — a developer project that won't hit the DSCR/completed-value test at conversion.
Reviewed by the licensing team at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties from offices in Newport Beach and Marina del Rey.