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Program 03
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.
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 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.
FAQ
Ground-Up Construction questions, answered.
How much of my construction project will you finance?
We fund new construction up to 70% of value and up to 85% of total cost (land plus build), in most states, on loans up to $5M. Experienced builders reach the higher end of leverage. We finance both the lot and the vertical construction within those caps.
Will you finance the land or lot purchase?
Yes. Lot acquisition is funded as part of your loan-to-cost. If you already own the lot, that equity can serve as your down payment, which often lets us fund most or all of the build cost.
How does the draw schedule work?
Construction funds are released in draws as milestones are completed and verified, not handed over at closing. You submit your budget and scope of work up front, complete a phase, request a draw, and we release that portion after inspection. You pay interest on funds as they are drawn.
What are the rates and terms on a ground-up loan?
Our construction pricing starts around 10%, interest-only, on terms of 12 to 24 months. Market ground-up rates generally run 9% to 12% with 1 to 3 points. Your pricing and leverage depend on your build experience and the strength of the project.
Do you lend to first-time builders?
We consider builders at all levels, though a track record helps your leverage and rate. A first-time builder should expect to bring a strong general contractor, a detailed budget, and typically a larger equity contribution. A well-documented project goes a long way.
What do you need to quote a construction loan?
The lot cost or current value, your construction budget and scope of work, the projected after-built value, and your build experience. With those we can size the loan against both cost and completed value and send you terms.
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 San Luis Obispo
Other programs in San Luis Obispo
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
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