California Construction Lenders — Banks & Credit Unions
Which banks and credit unions offer construction loans in California.
At least 12 lenders actively originate construction-to-permanent loans in California as of early 2026. The market is dominated by regional and national banks (US Bank, Flagstar, Wells Fargo, CB&T, Columbia Bank/Umpqua, Banner Bank, PNC) plus one notable portfolio lender (Normandy) that uniquely accepts owner-builders. First Republic Bank's highly regarded construction program was permanently lost when the bank failed in May 2023; JPMorgan Chase does not offer consumer construction loans. BBVA USA's California construction programs were successfully continued under PNC Bank after the 2021 acquisition. Washington Federal (WaFd Bank) exited residential mortgage lending entirely. Most bank lenders require a licensed general contractor and offer one-time-close products with interest-only payments during construction. Maximum LTV ranges from 80-95% for loans under $1M, dropping to 70-80% for loans over $2M. Normandy is the only identified lender accepting owner-builders statewide through a broker channel. Bank of America offers construction lending only through its Private Bank division with a $2M minimum loan and $3M liquidity requirement.
Key Facts
- JPMorgan Chase does NOT offer consumer/residential construction loans — confirmed on Chase.com. First Republic's construction program was not continued after the May 2023 acquisition.
- PNC Bank continued BBVA USA's construction lending in California after the June 2021 acquisition. PNC offers construction-to-permanent in 9 states (AL, AZ, CA, CO, FL, NM, TN, TX, WA) matching BBVA's former footprint.
- Normandy is the only identified California construction lender that explicitly accepts owner-builders statewide through both broker and direct channels. Wells Fargo technically allows owner-builders but requires 2-3 prior completed construction projects.
- US Bank offers the highest confirmed maximum loan amount at $10M and a detailed LTV tier structure: 90% up to $750K, 80% up to $1.5M, 75% up to $2M, negotiable above.
- CB&T offers up to 24-month construction terms among the longest in the market and claims no maximum loan amount on its website, though $6M is reported as the standard program cap via loan officer outreach.
- Banner Bank offers up to 95% LTV on conforming construction loans with 660+ FICO, one of the highest LTV ratios available for construction lending in California.
- Flagstar Bank is one of the only lenders maintaining an active TPO/wholesale broker channel for construction loans, with 3,500+ broker partners.
- Columbia Bank (formerly Umpqua) is acquiring Pacific Premier Bank (~$18B assets, heavy SoCal presence), which will dramatically expand its California construction lending footprint.
- Bank of America construction-to-permanent loans are available ONLY through its Private Bank division with $3M minimum liquidity, $2M minimum loan, and $1M post-closing liquidity.
- Wells Fargo pared $1.5B in construction loans in Q4 2025, indicating a pullback especially on the commercial CRE side, though residential construction-to-permanent loans remain available.
- Normandy's rates are Prime + 2.25% to 4.25% (approximately 9.75%-12%+ total), representing a 3-5% premium over conventional mortgage rates versus 0.5-1.5% for bank lenders.
- SchoolsFirst Federal Credit Union and Golden 1 Credit Union — the two largest California credit unions — do NOT offer construction loans.
- First Interstate Bank does NOT operate in California. Today's First Interstate BancSystem is a Montana-based entity with no California operations — unrelated to the historical First Interstate Bancorp that merged with Wells Fargo in 1996.
- Pacific Premier Bank offers construction lending in California but explicitly for developers and investors ONLY — not for owner-occupied residents building their own homes.
- First Republic Bank held approximately $2.4B in commercial and multifamily construction loans at the time of its May 2023 failure. Its unique fixed-rate construction-to-perm product has not been replicated by any successor lender.
Decision Rules
If: Borrower wants to act as owner-builder (own general contractor) in California
Then: Normandy is the only identified statewide option accepting owner-builders through brokers and direct. Wells Fargo accepts owner-builders but requires 2-3 prior completed construction projects. All other identified bank lenders require a licensed third-party builder/contractor.
If: Borrower needs construction loan over $2M in California
Then: Best options are US Bank (up to $10M, 75% LTV), CB&T (up to $6M, 75% LTV at $2M-$3.6M), Flagstar Private Bank (up to $10M with 10% deposit requirement), Normandy (up to $5M, 75% LTV, construction-only), or Bank of America Private Bank ($2M minimum, requires $3M+ liquidity).
If: Borrower wants to work through a mortgage broker for construction lending
Then: Primary options are Flagstar Bank (3,500+ TPO broker partners), Normandy (broker channel with 1.5-2% max broker fee), and Wells Fargo (correspondent lending channel). Most other CA construction lenders are direct-only.
If: Borrower wants highest possible LTV (lowest down payment) on a conforming construction loan under $1M
Then: Banner Bank offers up to 95% LTV (5% down) with 660+ FICO. Wintrust offers VA at 100% and FHA at 96.5%. US Bank offers 90% LTV up to $750K. Flagstar and Columbia Bank offer 90% LTV on conforming amounts.
If: Borrower wants one-time close construction-to-permanent loan in California
Then: Available from US Bank, CB&T, Flagstar, Columbia Bank, Banner Bank, PNC Bank, Wells Fargo, Wintrust. NOT available from Normandy (construction-only, must refinance into separate permanent). Bank of America one-time close requires $2M+ minimum.
If: Borrower needs the longest construction term available
Then: CB&T offers up to 24 months with one extension. US Bank offers 12- or 24-month build periods. Fremont Bank offers up to 24 months. Most other lenders cap at 12 months with possible extensions.
If: Borrower wants government-backed construction loan (FHA or VA) in California
Then: Flagstar offers FHA construction-to-permanent. Wintrust offers FHA, VA, and conventional construction. PNC offers FHA, VA, and USDA options. Wells Fargo offers FHA and VA for newly constructed homes.
If: Borrower has imperfect credit or is a foreign national needing CA construction financing
Then: Normandy is the only identified option — explicitly markets to borrowers with less-than-perfect credit and foreign nationals. Bank lenders typically require 680-720+ FICO and US person/resident status.
If: Borrower wants a California-only specialist lender with deep local knowledge
Then: California Bank & Trust (CB&T) operates exclusively in California with 81+ branches. Fremont Bank is Bay Area-focused with statewide CA coverage. Both are relationship-based with local decision-making.
If: Borrower needs construction financing for investment/spec properties in California
Then: Most consumer construction-to-permanent lenders restrict to primary residences and second homes. Pacific Premier Bank serves investors/developers for SFR construction but not owner-occupants. Normandy offers builder spec/model loans at 60% of appraised value. Fremont Bank and Mechanics Bank serve builder/developer construction.
California-Specific
- California high-cost area conforming loan limit for 2025 is $1,149,825 for single-family (most CA coastal counties). Standard conforming limit is $806,500. These thresholds affect LTV tiers — lenders typically offer higher LTV (90%+) for conforming amounts and lower LTV (75-80%) for jumbo amounts.
- CB&T is the only identified construction lender operating exclusively in California. All other active lenders are multi-state or national.
- Columbia Bank (formerly Umpqua) is acquiring Pacific Premier Bank (~43 SoCal branches), potentially reshaping the CA construction lending landscape in 2026-2027.
- Banner Bank's CA presence is concentrated in Northern/Central California. Not a strong option for Southern CA borrowers.
- First Republic's failure left a significant void in California's construction lending market, particularly Bay Area and Los Angeles. No lender has replicated its unique below-market fixed-rate construction-to-permanent product.
- California's DFPI licenses non-bank construction lenders like Normandy (Normandy West Corporation, DFPI #6037485). Borrowers should verify active DFPI licensing for any non-bank construction lender.
- SchoolsFirst FCU (1.2M+ members) and Golden 1 CU (~$19B assets) — California's largest credit unions — do not offer construction loans.
- Pacific Premier Bank offers construction lending in CA but exclusively for developers and investors, not owner-occupied residential construction. This distinction could mislead borrowers.
Common Misconceptions
Limitations & Gaps
- Most lenders do not publish specific LTV tiers, rate premiums, credit score minimums, or maximum loan amounts publicly. Specific numbers in this research come from third-party outreach and may not reflect current terms. All figures should be verified by direct lender contact.
- Rate premiums over conventional mortgages are estimated for most bank lenders (0.5%-1.5%). Only Normandy publishes specific rate formulas. Actual rates are relationship-dependent and change with market conditions.
- Owner-builder policies are not explicitly stated by most bank lenders. The finding that most banks require a licensed contractor is inferred from marketing language and third-party reviews.
- Mechanics Bank / HomeStreet merger (September 2025) is very recent. Construction lending programs may still be in transition.
- Wells Fargo's owner-builder acceptance is based on third-party sources, not confirmed on Wells Fargo's official website. Requirements may not be current.
- Columbia Bank LTV tiers are based on an Oregon ADU finance guide and 2021 Prefab Review article — thresholds may have been updated since conforming limits changed.
- PNC Bank construction loan specifics (LTV, loan amounts, credit scores) are not published publicly. PNC is confirmed active but program details are the least transparent of all identified lenders.
- Fremont Bank routes residential construction through its commercial banking division. Terms are entirely relationship-based with no published parameters.
- This research did not comprehensively survey all small community banks, CDFIs, or private/hard money lenders offering construction financing in California.
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