California Construction Lenders — Banks & Credit Unions

Which banks and credit unions actually offer construction loans in California — and which don't. JPMorgan Chase does not offer residential construction loans. First Republic's program was not continued after the May 2023 acquisition. This guide covers what's actually available, with LTV tiers, loan ranges, and whether they work with brokers.

By Shane BoothResearched 2026-05-26medium confidence

The California construction-to-permanent lending market is dominated by regional and national banks plus one notable portfolio lender that uniquely accepts owner-builders statewide. 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. Most bank lenders require a licensed general contractor and offer one-time-close products with interest-only payments during construction. Owner-builder options are extremely limited — nearly all bank lenders decline them. For specific lenders, LTV tiers, and current terms, see the Bank & Portfolio Lenders section above.

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 historically allowed owner-builders with 2-3 prior completed construction projects but discontinued its consumer construction loan program in 2025-2026.
  • Some national banks offer construction loans up to $10M with tiered LTV structures that decrease as loan amount increases. Check the Bank & Portfolio Lenders above for specific LTV tiers per lender.
  • Some California community banks offer up to 24-month construction terms, among the longest in the market. Check the Bank & Portfolio Lenders above for term lengths in the key features.
  • Some regional banks offer up to 95% LTV on conforming construction loans with 660+ FICO, among the highest LTV ratios available for construction lending in California. Check the Bank & Portfolio Lenders above sorted by max LTV.
  • Very few bank lenders maintain an active TPO/wholesale broker channel for construction loans. Check the Bank & Portfolio Lenders above for those marked 'broker channel: Yes'.
  • Columbia Bank (formerly Umpqua) is acquiring Pacific Premier Bank (~$18B assets, heavy SoCal presence), which will dramatically expand its California construction lending footprint.
  • Some major national banks offer construction lending ONLY through their Private Bank divisions, requiring multi-million-dollar minimum liquidity and loan amounts. Check the Bank & Portfolio Lenders above for minimum requirements.
  • Wells Fargo pared $1.5B in construction loans in Q4 2025 and subsequently wound down its consumer construction-to-permanent program in 2025-2026. The construction-loans landing page now returns HTTP 404. Existing borrowers continue to be serviced; no new applications are accepted.
  • Portfolio lenders that accept owner-builders typically charge a significant rate premium (3-5% above conventional) versus 0.5-1.5% for standard bank construction lenders. Check the lender profiles above for current rate premiums.
  • 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: Very few bank lenders accept owner-builders. Check the Bank & Portfolio Lenders above for those marked 'owner-builder: Yes'. One portfolio lender accepts them statewide through both broker and direct channels. One national bank technically allows it but requires 2-3 prior completed projects. All other bank lenders require a licensed third-party contractor.

If: Borrower needs construction loan over $2M in California

Then: Check the Bank & Portfolio Lenders above — sort by loan range max. Several banks go up to $6-10M. One portfolio lender goes to $5M but is construction-only (must refinance). One private bank division requires $2M+ minimum with substantial liquidity. LTV drops to 70-80% at these amounts.

If: Borrower wants to work through a mortgage broker for construction lending

Then: Check the Bank & Portfolio Lenders above for those marked 'broker channel: Yes'. Most CA construction lenders are direct-only. Only a few maintain active TPO/wholesale broker channels.

If: Borrower wants highest possible LTV (lowest down payment) on a conforming construction loan under $1M

Then: Check the Bank & Portfolio Lenders above — sort by max LTV under $1M. The highest-LTV bank lenders typically require 660+ FICO. Some offer VA at 100% and FHA at 96.5%. Several banks offer 90%+ on conforming amounts.

If: Borrower wants one-time close construction-to-permanent loan in California

Then: Most bank lenders above offer one-time close (OTC). Check their key features. One notable exception: portfolio lenders offering construction-only require a separate permanent refinance. One private bank division's OTC requires $2M+ minimum.

If: Borrower needs the longest construction term available

Then: Check the Bank & Portfolio Lenders above for key features mentioning term length. Some offer up to 24 months with extensions. Most cap at 12 months with possible extensions.

If: Borrower wants government-backed construction loan (FHA or VA) in California

Then: Several bank lenders offer FHA and/or VA construction-to-permanent options. Check the Bank & Portfolio Lenders above for key features mentioning FHA, VA, or USDA.

If: Borrower has imperfect credit or is a foreign national needing CA construction financing

Then: Check the Bank & Portfolio Lenders above for those accepting less-than-perfect credit or foreign nationals. One portfolio lender explicitly markets to these borrowers. Most bank lenders require 680-720+ FICO and US person/resident status.

If: Borrower wants a California-only specialist lender with deep local knowledge

Then: Check the Bank & Portfolio Lenders above for community banks with California-only operations or Bay Area focus. These tend to be 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. Check the Specialty & Non-QM Lenders section for investment property options. Some portfolio lenders offer builder spec/model loans at reduced LTV.

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 historical owner-builder acceptance was based on third-party sources, never confirmed on Wells Fargo's official website. The program has since been discontinued (2025-2026); the owner-builder requirements above reflect the now-defunct program.
  • 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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