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Program 04

Ground-Up Construction in San Luis Obispo

Ground-up construction loans for San Luis Obispo builders and developers.

Ground-up construction financing for spec builders and developers: up to 70% loan-to-value and 85% of cost, capped at $5M, with draws that keep pace with your build schedule over a 12 to 24 month term. In San Luis Obispo County, that pacing matters most in Los Osos, where a decades-long building moratorium has just lifted and the county now releases new-construction allocations on a strict filing calendar. Every loan is business-purpose only and subject to underwriting.

Ground-Up Construction in San Luis Obispo, CA from USA Mortgage
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
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*Typical terms, subject to underwriting and market conditions.

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Local FAQ

Ground-Up Construction in San Luis Obispo, answered.

How does Los Osos's building allocation affect a ground-up construction loan there?
The county's allocation calendar sets your build window, not your contractor. After a roughly 35-year moratorium, the county now releases about 50 new-unit allocations a year on a phased calendar: Batch 1 waitlist holders had until June 1, 2026 to state intent and July 15, 2026 to file their construction permit application, with unused allocations opening to the rest of the waitlist and then to the county at large later in the year. Scope a Los Osos construction loan around that calendar, not around when your crew is free.
Does a Los Osos build need anything beyond the standard county permit?
Yes, a Certificate of Inclusion under the Los Osos Habitat Conservation Plan. Every residential build in Los Osos needs one, plus payment of LOHCP fees based on the square footage of ground disturbance. The county has not published a fee schedule, so treat it as a diligence item to confirm with your builder and the LOHCP coordinator before you size the loan, not as a fixed line item.
Can a coastal-zone approval in this county still be appealed after we break ground?
Yes, for up to 10 working days after local approval. San Luis Obispo County issues its own coastal development permits, but a Board of Supervisors decision in the Coastal Zone can be appealed to the California Coastal Commission within 10 working days of the Commission receiving the county's Notice of Final Action, and state law requires the appeal to be heard within 49 days. A construction loan on a coastal lot in Cambria, Cayucos, Los Osos or Avila Beach should carry enough term to survive that window.
Does the city of San Luis Obispo make builders pay impact fees up front?
Not always, for qualifying rental projects. The city charges development impact fees for transportation, parks, police, fire, water and wastewater, but it also runs a deferral program: an eligible for-rent residential project can enter a development impact fee deferral loan agreement instead of paying at permit. The city has not published its fee amounts, so confirm your project's number with the city before you budget it.
Where's the easiest lot supply for a ground-up build in this county right now?
North County, on basis, not on any published lot count. Atascadero and Paso Robles carry roughly $780,000 in typical home value against seven-figure basis on the coast and in the city of San Luis Obispo, which is why a scope-driven build pencils differently there. No county-wide lot inventory or permit-timeline data has been published for this county, so size your build timeline off your own permit conversations, not a market average.
Has water supply ever stopped a project in this county?
It's been the grounds for at least one real appeal in Los Osos. The Los Osos Sustainability Group has appealed local permits for two homes and two hotels on groundwater-overdraft grounds, using the coastal appeal process above. It is not a blanket rule against building, but it is a live objection in Los Osos specifically, so budget for a groundwater question as a normal part of the file there, not an edge case.

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
Browse all guides
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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 2026-08-28.

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