Build or Buy Property in Los Angeles?
Understand Your Financing Options Before You Apply
Construction loans and SBA real estate financing are approved based on structure, documentation, and timing — not ideas. This page shows you exactly what lenders review.
Free Construction + SBA Qualification Guides (PDF)
Mortgage & Real Estate Broker
Griselda Espinoza
NMLS 1091484 | DRE 01785581
310-721-3652
Serving Southern California for 27 years
You’re in the Right Place If You Want To:
Building a home or investment property
Buying land and constructing
Tearing down and rebuilding
Buying an owner-occupied commercial building
Replacing rent with ownership through SBA financing
If you're casually exploring with no timeline, this may feel more detailed than expected — and that's intentional.
Construction Loan Blueprint
Construction loans are short-term, high-risk loans for lenders. Most denials happen before plans are ever reviewed — because the project isn't structured correctly.
What Lenders Actually Evaluate
Borrower credit, liquidity, and reserves
Contractor licensing, insurance, and experience
Fully itemized construction budget
Draw schedule tied to construction milestones
Appraisal based on completed value
Exit strategy (how the loan will be paid off)
Common Reasons Construction Loans Fail
Budget not aligned with appraisal
Contractor paperwork incomplete
Draw schedule unclear
Reserves underestimated
No clear exit strategy
This Blueprint Is Ideal For
Ground-up construction
Tear down & rebuild
Major additions
Land + build projects
Investment new construction
SBA Real Estate Qualification Guide
Many business owners qualify to buy their own building with as little as 10% down — but only if SBA rules are understood before applying.
Business Requirements
2+ years in business
Profitable most recent years
No major unresolved tax issues
U.S.-based operating company
Borrower Requirements
680+ credit preferred
Clean repayment history
Personal financial statement
Liquidity for down payment + closing
SBA Financing Common Mistakes
Waiting until lease renewal pressure
Applying before cleaning financials
Overestimating affordability
Ignoring cash flow impact
Property & Financing Rules
Owner must occupy 51%+ of the building
Office, retail, medical, warehouse allowed
Mixed-use allowed if occupancy qualifies
Financing Structure
~10% down (504)
Up to 90% financing (7a)
20–25 year amortization
Some soft costs may be included
Get the Guides That Match Your Goal
Lenders don't approve ideas.
They approve structured projects.
Serious About Building or Owning Property in Los Angeles?
Start with the same criteria lenders use.
Construction and SBA financing approvals depend on documentation, structure, and timing.
Private financing reviews available by request.
Griselda Espinoza
Mortgage & Real Estate Broker
NMLS 1091484 | DRE 01785581
310-721-3652 | Serving Los Angeles County