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Program 03
Ground-Up Construction in San Mateo
Ground up construction loans for San Mateo County builders.
We fund ground-up construction in most states, up to 70% LTV and 85% of cost, with draws that keep pace with your build. Land is scarce across all eight cities we serve here, from Burlingame to South San Francisco, so a lot purchase or a teardown is often the only way onto the Peninsula. On an unincorporated county parcel that scarcity opens the door to a new accessory dwelling unit with no owner-occupancy requirement to rent it out; on an incorporated lot, a second unit approved through the state's ministerial process carries that same advantage without the affidavit a lot split requires. Business-purpose only, and every term 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 San Mateo, answered.
How much room is actually left to build in San Mateo County?
Very little, and it is close to fixed rather than growing. San Mateo County added about 1,600 net housing units in the year ending January 1, 2026, roughly 0.55%, against a population of 748,182 that barely moved (down 0.03%) over the same period. A buildable lot or a teardown candidate anywhere among the eight cities we serve is competing against a housing stock that has almost stopped expanding, which is why a ground-up or infill project here is underwritten on the lot itself, not on comparable new-build volume nearby.
Can I add a new accessory dwelling unit as a ground-up build in San Mateo County?
Yes, and the county's own standards for unincorporated parcels are generous. On an eligible unincorporated single-family lot, San Mateo County allows one conversion or new-construction ADU, one detached new-construction ADU, and one JADU, plus one additional non-state-exempt ADU, and up to eight detached ADUs on a multifamily-zoned parcel with an existing building, with no owner-occupancy requirement to rent the finished unit out. Those standards cover unincorporated county land specifically; each of the eight cities we serve, San Mateo, Redwood City, Burlingame, Menlo Park, South San Francisco, San Bruno, Foster City, and Millbrae, sets its own ADU rules inside state law, and we have not verified any individual city's standard, so confirm yours with that city's planning department before you scope the build.
How fast does a ministerial approval move on a two-unit or ADU project here?
State law sets the clock, not the city. A qualifying two-unit project under SB 9 gets a decision within 60 days, an ADU application gets a completeness review within 15 business days, and an ADU appeal is decided within 60 days. No San Mateo County city has published its own permit timeline, impact fee schedule, or plan-check duration that we could verify, so size your construction draw schedule against the statutory clock above rather than a promised local turnaround, and confirm the current fee and timeline with your city's building department before you close.
Does an SB 9 lot split work for a pure investor building on spec?
Usually not on its own. The SB 9 lot split path requires the owner to sign a three-year owner-occupancy affidavit, which a pure investor typically cannot do, while the SB 9 two-unit ministerial path carries no such affidavit. At San Mateo County basis, where mid-tier values across the eight cities we serve ran from about $1.2 million in South San Francisco to nearly $2.9 million in Menlo Park as of July 2026, the more useful play for most investors here is adding density on land already paid for, through a second unit or an ADU, rather than splitting the lot.
Is there a hidden cost to building near Foster City's levee?
Not a hidden one, but a real one on the tax bill. Foster City's levee reached final completion in February 2024, so a parcel behind it sits outside the mandatory flood-insurance zone, but every Foster City tax rate area still carries a city GO bond line of about 0.0285%, roughly $531 a year on the city's mid-tier home value as of July 2026. The city runs a levee bond oversight committee, so that line is very likely the levee's, though we have not read the bond documents to confirm it. Budget that annual line item into your hold cost the same way you would any other assessment; it is a tax bill item, not a construction permit fee, and no county-wide construction impact fee schedule is published for us to cite.
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 Mateo
Other programs in San Mateo
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.
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