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4 Strong Construction Loan Options in California for New Builds, Rebuilds and ADUs
California construction financing has its own wrinkles: high building costs, wildfire rebuilds, backyard ADUs, and permitting that can stretch timelines. Several big East Coast construction lenders don't lend here at all, so it pays to know who does. Four strong options for California projects are Firefighters First Credit Union, Redwood Credit Union, Tri Counties Bank, and U.S. Bank, each with a single-close construction loan that converts to a permanent mortgage.
Disclosure: My Construction Path may be affiliated with, or receive compensation from, lenders featured in this article. Lenders are listed alphabetically, not ranked. Programs and availability change, so confirm details with each lender.
What we looked for
Each lender here had to show, on its own site:
- California lending for residential construction, either stated outright or through California branches
- A single closing, with automatic conversion to a permanent mortgage
- Project flexibility, such as rebuilds, ADUs, renovations, or jumbo loans
- A described draw or builder process
Every fact below comes from official lender pages or reputable third-party coverage.
Comparison at a glance
| Lender | California availability | Single close | Project types | Builder & draws |
|---|---|---|---|---|
| Firefighters First CU | Members building in California only | Yes, adjustable-rate | New construction | Licensed, insured builder; staged draws |
| Redwood Credit Union | California properties only | Yes | New homes, rebuilds, ADUs | Works with your plans and timeline |
| Tri Counties Bank | Licensed in California, Oregon and Nevada | Yes | Primary or vacation home; conforming and jumbo | How interest is handled during the build varies by lender. |
| U.S. Bank | California branches; national lender | Yes | Custom homes; buy-and-renovate | Draws authorized with an inspector |
Firefighters First Credit Union
Who it fits: Members of the fire service community and their families who are building in California.
Firefighters First, a credit union built for the fire family, offers a single-close construction loan for California members ready to build. One application, one approval, and one closing cover both the construction phase and the permanent mortgage, and the program is currently available only to members building in California.
Get connected with this lender
Notable features:
- Adjustable-rate structure that converts automatically when your home passes inspection, with no added closing costs or new credit check
- How interest is handled during the build varies by lender.
- A RateDrop program is listed for eligible members after conversion; ask the credit union for details
- Guidance to choose a licensed, insured builder with a strong track record
Membership is tied to the fire service community, so check eligibility first.
Redwood Credit Union
Who it fits: California borrowers building new, rebuilding, or adding an accessory dwelling unit.
Redwood Credit Union's construction loans fund building or rebuilding a home or an ADU. RCU offers construction with purchase, construction refinance, and construction-only loans, and its single-close option converts to a regular mortgage once construction is complete.
Get connected with this lender
Notable features:
- Individualized service built around your construction plans and timeline
- Lot loans for buying an empty lot to start from scratch
- ADU construction financing alongside primary-home builds
RCU's disclosures note that the program is for California properties only.
Tri Counties Bank
Who it fits: Borrowers building a primary or vacation home, including larger jumbo projects.
Tri Counties Bank offers construction loans to finance building your primary or vacation residence. How interest is handled during the build varies by lender. Ask how its construction-to-permanent loan works.
Get connected with this lender
Notable features:
- Conforming and jumbo construction loans
- Land loans to buy property before you build
- Licensed to lend in California, Oregon, and Nevada
U.S. Bank
Who it fits: Borrowers who want a national bank with construction-certified loan officers and a buy-and-renovate option.
U.S. Bank's construction loans include a one-time close on custom-built homes, with fixed or adjustable-rate options, so you can lock your rate before construction begins. The loan rolls into permanent financing when construction is complete. U.S. Bank has branches in California.
Get connected with this lender
Notable features:
- The lender authorizes draws for land, materials, labor, and permits, working with an inspector to keep the build on schedule and budget
- A one-time close option to buy a home that needs renovating, based on its value after improvements
- Lot loans for a single-family detached home site
- Construction-certified mortgage loan officers
U.S. Bank's construction page doesn't list state-by-state availability, so confirm your county with a loan officer.
Other California lenders to consider
Flagstar Bank offers a construction draw loan plus one-close conforming and one-close jumbo ARM options; its disclosures exclude Puerto Rico and the U.S. Virgin Islands rather than any state. Flagstar requires a full third-party builder contract on these loans, so owner-builders aren't a fit.
Get connected with Flagstar Bank
How to choose a California construction lender
- Start with availability. Some well-known construction lenders don't lend here. Confirm California eligibility, and any membership rules, before you spend time on an application.
- Plan for wildfire risk and rebuild timing. If you're rebuilding after a fire, ask how the lender handles a lot with an existing loan, insurance proceeds, and longer permit timelines.
- Treat ADUs as their own project. California's Department of Housing and Community Development publishes ADU guidance, and lenders like Redwood finance ADU construction. Ask whether yours is a separate loan or part of a larger build.
- Expect jumbo questions. California construction costs often exceed conforming limits. Read our guide to jumbo construction loans and ask about options like Tri Counties' jumbo program.
- Vet the builder. Every lender here reviews the builder, and some require a third-party contract.
- Know how the loan ends. Ask what inspections and documents you'll need to convert to a permanent mortgage after the build.
Frequently asked questions
Which lenders offer single-close construction loans in California?
Firefighters First Credit Union, Redwood Credit Union, Tri Counties Bank, and U.S. Bank all describe single-close construction loans that convert to permanent mortgages.
Can I get a construction loan to rebuild after a wildfire?
Many construction loans can fund a rebuild. Redwood Credit Union explicitly lists building or rebuilding a home. Ask how your existing mortgage and insurance proceeds will be handled.
Can I finance an ADU with a construction loan?
Yes, with some lenders. Redwood Credit Union offers construction loans for accessory dwelling units.
Are jumbo construction loans available in California?
Yes. Tri Counties Bank lists conforming and jumbo construction loans, and Flagstar offers a one-close jumbo ARM.
Do TD Bank or Citizens lend for construction in California?
Not currently. TD's loan officer directory doesn't list California, and California isn't on Citizens' construction-to-permanent state list.
Find your California construction lender
Your best fit depends on your county, your project type, and your builder. Get connected with a construction lender at My Construction Path to compare construction loan options for your land, budget, and timeline, and see which builder-friendly lenders serve your area.
My Construction Path may be affiliated with lenders featured in this article. Lender programs, eligibility, and service areas change often and vary by location. This article is for general education and is not a commitment to lend. All loans are subject to credit and property approval by the lender.