The same loan programs, with California-specific rules for permits, fire zones, energy code, and insurance.
Ken Clark Jr. is a Sacramento-based Certified Mortgage Advisor with PRMG Mortgage who helps buyers, landowners, veterans, and builders finance new homes across California, from Sacramento and the Sierra foothills to the Bay Area and Southern California.
Short answer: PRMG construction programs are available throughout California, subject to eligibility and program guidelines.
| Program | Often fits | Learn more |
|---|---|---|
| VA one-time close | Eligible veterans building a primary residence | VA construction |
| FHA one-time close | Smaller down payments, 3.5% minimum for eligible borrowers | FHA construction |
| USDA one-time close | Income-eligible buyers in eligible rural areas | USDA construction |
| Conventional one-time close | Primary or second homes, land equity | Conventional construction |
| Jumbo construction | Custom homes above conforming and high-balance limits | Jumbo loans |
| Investor and builder | Ground-up, spec, fix and flip (business purpose) | Builder construction . Fix and flip |
Short answer: for one-time close construction loans on California properties, building permits (and well and septic permits where applicable) are typically required before closing.
That makes permitting part of your loan timeline. Permits are issued by the city building department if the lot is inside city limits, or by the county if the lot is unincorporated. Start permits and builder registration as soon as you have final plans.
Short answer: California contractors are licensed by the Contractors State License Board (CSLB). Anyone can verify a license, its classification, bond, and workers' compensation status online.
Use the CSLB License Check before you sign a contract. A CSLB license is a state requirement. Lender builder registration is a separate documentation review for loan program eligibility.
Short answer: new homes permitted on or after January 1, 2026 must meet the 2025 Building Energy Efficiency Standards (Title 24, Part 6), which generally require solar photovoltaic systems on new single-family homes, with some exceptions.
Battery storage is not required for single-family homes but can earn compliance credit. Solar belongs in the builder's contract and budget. See the California Energy Commission 2025 Energy Code.
Short answer: homes in state-mapped fire hazard severity zones must meet wildfire-resistant construction standards, and homeowners insurance can be harder to find and more expensive in higher-risk areas. Check both before you buy a lot.
Look up any address on the Office of the State Fire Marshal Fire Hazard Severity Zones page; updated local responsibility area maps were released in 2025. Insurance is required for the loan, so get quotes early. Where private coverage is limited, the California FAIR Plan is a fire-coverage option of last resort, usually paired with a separate policy for other risks.
Short answer: in California, new construction is assessed at completion, which usually means a supplemental property tax bill after the home is finished. Many newer planned communities also have special taxes, such as Mello-Roos (Community Facilities District) assessments.
Budget for taxes based on the finished value, not the land alone. Your permanent payment will be based on the full assessed value.
Short answer: owned land equity may count toward your down payment, and parts of rural California may be eligible for USDA financing for income-eligible buyers.
Check any address on the USDA eligibility map. Rural lots usually need well and septic permits through the county environmental health department. See land equity and buying land and building.
Permits, hazards, and lot conditions differ by county. Local guides:
Building elsewhere in California? The programs are the same statewide, and Ken works with borrowers across the state.
Short answer: the 2026 conforming limit is $832,750 for a one-unit home in most of California, and up to $1,249,125 in high-cost counties such as Los Angeles, Orange, and much of the Bay Area. FHA limits vary by county.
Above those limits, jumbo construction is available for eligible borrowers. Verify current county limits with FHFA and the HUD FHA lookup.
Answered by Ken Clark Jr., Certified Mortgage Advisor. Program availability and requirements vary and are subject to change.
Yes. PRMG construction programs, including VA, FHA, USDA, conventional, and jumbo one-time close loans, are available throughout California, subject to eligibility and program guidelines.
Yes. Eligible veterans may use VA one-time close financing in California, subject to entitlement, builder requirements, and program guidelines. Permits are typically required before closing.
For one-time close loans in California, building permits and any well and septic permits are typically required before closing.
Use the Contractors State License Board License Check at cslb.ca.gov.
California's 2025 energy code, in effect since January 1, 2026, generally requires solar photovoltaic systems on new single-family homes, with some exceptions.
Homes in fire hazard severity zones must meet wildfire-resistant construction standards, and insurance may cost more or be harder to find. Check the zone and get insurance quotes early.
In California, new construction is assessed at completion, which usually results in a supplemental tax bill. Budget for taxes on the finished value.
$832,750 for a one-unit home in most counties and up to $1,249,125 in high-cost counties.
Often yes. Owned land equity may count toward your down payment and closing costs, depending on the program.
Guidelines change. Verify current program requirements with Ken Clark Jr. before relying on them for a transaction.
Disclaimer: This content is for educational purposes only and is not a commitment to lend, a guarantee of approval, or a rate quote. Loan programs, down payment requirements, terms, and eligibility depend on borrower, property, project, builder, and program qualifications, are subject to underwriting, and vary by state. Not all applicants or projects will qualify. Builder registration is a documentation review for program eligibility and is not an endorsement of any builder. Equal Housing Opportunity. Paramount Residential Mortgage Group, Inc. (PRMG), NMLS #75243. Ken Clark Jr., NMLS #225375. PRMG is licensed in 49 states, excluding New York.
Certified Mortgage Advisor and Branch Manager at PRMG Mortgage (NMLS #75243). 28 years in mortgage lending. Specializes in FHA, VA, conventional, DPA, jumbo, Non-QM, renovation, and construction financing for buyers and investors in Sacramento, New Jersey, and nationwide. PRMG is licensed in 49 states, excluding New York. Three-time Gold Award winner for Highly Reviewed Mortgage Team in Sacramento (2023, 2024, 2025). NMLS #225375.
Verify Ken's license at NMLS Consumer Access · Read client reviews · Schedule a call