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Program 03
Ground-Up Construction in Bakersfield
Ground up construction loans for Bakersfield's flat, buildable valley floor.
Built for spec home builders and developers working the Bakersfield valley floor. We fund the land and the vertical build up to 70% LTV and 85% of cost, with draws that keep pace with the job. The Metropolitan Bakersfield Transportation Impact Fee applies jointly across the city and the county and adjusts every year, so pull the current schedule before you set your budget. Business-purpose only, and every structure is set in underwriting.
70%
max LTV
85%
of cost
Most states
funding
$5M
max loan
Typical figures, subject to underwriting and market conditions. Not a commitment to lend.
How it works
We finance both the land and the vertical construction, with a draw schedule built around your timeline. Experienced builders can access higher leverage on cost.
Who it's for
Spec home builders
Developers and operators
Lot purchase or teardown
Build-to-rent strategies
Typical terms
Loan amountUp to $5M
LeverageUp to 70% LTV / 85% LTC
Term12 to 24 months
DrawsPer build schedule
RateFrom 10.00%*
UseSpec or build-to-rent
*Typical terms, subject to underwriting and market conditions.
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Local FAQ
Ground-Up Construction in Bakersfield, answered.
What is the Metropolitan Bakersfield Transportation Impact Fee, and does it apply outside city limits?
Yes: it is a metro-wide fee, not a city-only one. The City of Bakersfield and the Kern County Board of Supervisors jointly adopted the Transportation Impact Fee in 1992, and it applies across the metropolitan area rather than stopping at the city line. It is imposed at building permit under Bakersfield Municipal Code chapter 15.84 and adjusts every year against a construction cost index; an alteration that adds no dwelling units is exempt. The current dollar figure was not retrievable this pass, so confirm the live fee schedule with Development Services before you set your construction budget.
Can I estimate my Bakersfield building permit fees and plan-review timeline off a nearby city's schedule?
No, and no Bakersfield figure exists to substitute in. Bakersfield's building permit fee schedule, plan-review timelines, and water and sewer connection charges for new residential construction were not retrievable this pass; the municipal code site blocked automated access. Do not carry a number from another California city or from Kern County's unincorporated fee schedule into a Bakersfield pro forma. Pull the current fee schedule and review timeline directly from City of Bakersfield Development Services before you underwrite carrying costs.
I'm building in Tehachapi or along the mountain rim. Does the 2025 fire hazard map change what I can build?
It can change your building and defensible-space requirements, not just your insurance quote. CAL FIRE's 2025 Fire Hazard Severity Zone update put more than half of the city of Tehachapi into the very high or high fire hazard severity zone, and the Kern River Valley and the Frazier Park corridor sit in the same category. A designation is a hazard map, not an insurance rating, so pull the parcel's zone before you finalize materials and site plans, and get a wildfire quote in the file before the term sheet. The valley floor cities, Bakersfield, Shafter, Wasco, Delano, McFarland, and Arvin, are not a wildfire market and do not carry this constraint.
Does Bakersfield's flat, entitled valley floor make a build-to-rent duplex or ADU strategy easier here than elsewhere in California?
Yes, mechanically: California's SB 9 gives a two-unit build ministerial approval statewide. The recodified ADU statutes carry no owner-occupancy string on the ADU path, so the density play sits on Bakersfield's flat, greenfield-capable lots the same way it does anywhere in the state. The SB 9 lot split is the exception: it carries a three-year owner-occupancy affidavit an investor cannot sign, so keep that path off an investment file. Once a build-to-rent unit is finished and leased, it moves into a DSCR rental loan for the hold.
Bakersfield just adopted a new Housing Element. What does that mean for entitlement risk on a new build?
It means the city's housing plan and zoning framework are current, which lowers entitlement uncertainty. Bakersfield adopted its 2023 to 2031 Housing Element on September 24, 2025, running alongside the Bakersfield 2045 General Plan update. No source in our file publishes single-family permit counts for the metro, so do not size a spec pipeline off a stated permit-volume trend; size it off your own site's zoning and the current fee schedule instead.
My construction loan pays off at completion. Does Kern County reassess the parcel the moment the build finishes?
Yes, and it is a separate bill from your purchase-price reassessment. Kern issues a supplemental assessment on every change of ownership and every qualified completion of new construction, prorated for the balance of the fiscal year, and that supplemental bill runs on its own delinquency calendar, mailed anytime November through June with the first installment delinquent the last day of the month following issue. Budget for it separately from the annual secured tax bill so it does not surprise you at the exit.
How much of a Bakersfield build do I have to fund myself?
Roughly 15% of cost, and your land basis often carries part of it. We lend up to 70% LTV and 85% of cost, whichever binds first. On a $1,000,000 Bakersfield project cost that is up to $850,000 from us and $150,000 from you (1,000,000 x 85% = 850,000), with draws released per the build schedule rather than paid up front. The Metropolitan Bakersfield Transportation Impact Fee and your permit costs belong inside that cost figure, so pull the current schedule from Development Services before you set the budget. Subject to underwriting.
Do I need a building track record to borrow on a Bakersfield ground up project?
No, but it changes your leverage. Experienced builders can access higher leverage inside the same program, up to 70% LTV and 85% of cost. A first build gets read on the site, the plans, the budget and the contractor. We run credit, but on construction there is no minimum score, and a thin file is usually answered with less leverage rather than a decline. Terms run 12 to 24 months. Subject to underwriting.
How large a Bakersfield construction loan can you write?
Up to $5 million, on spec or build-to-rent product. That reaches most of what gets built on the Bakersfield valley floor, whether that is one spec house or a small build-to-rent group. Money releases as draws per the build schedule over a 12 to 24 month term, so you are not carrying interest on budget that is still sitting there. Once a build-to-rent unit is finished and leased it can move into a DSCR rental loan for the hold. Subject to underwriting.
More Ground-Up Construction questions, answered on the program page
Resources
Guides for Ground-Up Construction
Fix and Flip · 6 min read
Fix and Flip Loan Requirements: What You Need to Get Funded
Read the guide Fix and Flip · 5 min read
What Is ARV (After-Repair Value) and How Do You Calculate It?
Read the guide Construction · 5 min read
How Ground-Up Construction Loans Work
Read the guide Getting Funded · 4 min read
LTV vs LTC: What's the Difference?
Read the guide More in Bakersfield
Other programs in Bakersfield
Fix and FlipUp to 90% / 100% rehabRental / DSCR30-yr fixed, DSCR from 0.75CRE BridgeUp to $10M, 24-36 moTransactional FundingSame-day double-close capitalBank Statement / No-DocNo tax returns requiredConventional InvestmentNon-owner-occupied investmentPortfolio LoansMultiple properties, one loanCRE PermanentLong-term agency & permSBA Financing7(a) & 504 placement
About the local figures on this page
Local rules move. Every tax rate, fee, ordinance and market figure here comes from a primary source and carries the date we read it, and we correct them as the rules change. Where a number is mid-change or we could not verify it, we say so rather than guess. Before you commit a budget, confirm anything that drives it with the city or county, and talk to your attorney or CPA on questions of law or tax.
Published by USA Mortgage Funding, LLC, NMLS #152588. Researched from primary sources by our team, drafted with AI assistance, and every figure checked against its source before publishing. Where an answer rests on a public record, that record is linked under it. Figures read on 2026-08-15.
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