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Program 04

Ground-Up Construction in Santa Barbara

Ground-up construction loans for Santa Barbara spec builders and developers.

USA Mortgage funds ground-up construction for Santa Barbara County spec builders and developers, up to 70% LTV and 85% of cost, with draws that keep pace with your build schedule and terms from 12 to 24 months. A lot inside the city's Coastal Overlay Zone needs its own Coastal Development Permit under Title 28, a separate track from the inland code. City lots also face a Growth Management Program ceiling of 1,000 square feet on new nonresidential floor area, with design review required above that. We lend business-purpose capital only, to LLCs and companies building non-owner-occupied property, subject to underwriting.

Ground-Up Construction in Santa Barbara, 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 Santa Barbara, answered.

Does the City of Santa Barbara publish a permit or plan-check timeline I can build a draw schedule around?
We could not source one, so do not build a draw schedule around a number you cannot verify. No plan-check turnaround, median entitlement duration, or streamlining commitment was located for the city in our research, and Santa Barbara's reputation for slow entitlements is widely asserted but unverified. Get a current estimate directly from the Community Development Department before you lock a construction schedule, and structure your draws against your own build sequence.
Are development impact fees or school impact fees published for a Santa Barbara build?
We have not sourced a fee schedule for any city or district in this county. Development impact fees, school impact fees, and any fee deferral program were not located for Santa Barbara or for any other city or district here, so we publish no fee number. Price your pad cost as a variable to confirm with the city, the county, and the local school district before you underwrite, not as a number you can look up.
My lot is near the coast. Does that mean a second permit track?
Yes, if it sits inside the city's Coastal Overlay Zone. A parcel inside the Coastal Overlay Zone (S-D-3) needs a Coastal Development Permit, and the governing code there is Title 28, not the inland Title 30. The Coastal Commission has already shown in this county that certifying a coastal program change is a discretionary outcome, not a formality, so confirm which title and which permit track your parcel sits under before you price an entitlement timeline.
I'm planning a mixed-use build in the city. How much nonresidential space can I add?
Most lots cap new nonresidential floor area at 1,000 square feet, 3,000 downtown. The city's Growth Management Program (chapter 30.170 inland, 28.85 coastal) sets that ceiling on any residential-to-commercial conversion or addition. Adding more than 1,000 square feet requires a Development Plan and design review, and more than 3,000 square feet requires Planning Commission approval. Size your project to that ceiling before you draw plans, not after.
If I add an ADU to a Santa Barbara build-to-rent project, can I still run it as a short-term rental?
No, not on any part of that parcel. In the City of Santa Barbara, a property with an accessory dwelling unit or junior accessory dwelling unit may not be rented for less than 31 consecutive days, and that rule reaches the primary unit as well as the ADU. Adding an ADU to a build-to-rent project forecloses short-term rental on the whole parcel, so decide which strategy you are building for before you finalize the unit mix, not after the certificate of occupancy.
Will a unit I build cost more to run on utilities if I lease it short-term?
It can. The city's own guidance for short-term rental conversions flags that a separate water meter may be required, after which commercial water and sewer rates apply instead of residential rates. Build that utility line into your pro forma if any part of a new project is headed toward short-term rental use rather than a standard long-term lease.

More Ground-Up Construction questions, answered on the program page

Resources

Guides for Ground-Up Construction

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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 2026-09-04.

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