Construction Loans Pave Way to Ideal La Jolla Dream Home

By Scott Murfey, Murfey Construction

New construction contractor in La Jolla

New construction contractor in La Jolla discusses how construction loans make building from the ground up easy.

We’ve all imagined it: that perfect, gorgeous La Jolla home complete with gourmet kitchen, stunning bathrooms, huge master suite, gorgeous flooring, a balcony overlooking the ocean and a backyard ready for entertaining.

Sounds perfect, doesn’t it?

There’s no doubt that one of the major goals in life is getting into the home of your dreams. Custom homes are the ideal choice for most homebuyers, but many don’t consider it a possibility since financing new construction can seem daunting. But did you know it’s actually a relatively simple process with the help of construction loans?

Here’s what you need to know about building from the ground up thanks in part to a recent article at The Wall Street Journal. By next year, you could easily have the home of your dreams with the right financing in place to make it happen.


New construction contractor in La Jolla

New construction contractor in La Jolla

Many homeowners want to build their dream home from the ground up but aren’t sure how to approach financing. The good news is that buyers don’t have to come up with cash upfront to fund new construction. Construction loans bridge the gap between dream and reality, making new home building in La Jolla a real possibility.

Once you’ve secured the ideal plot of land, your next step is to get financing in place to start building. One of the most popular types of construction loans is a “one-time close construction loan” also referred to as a “construction-to-permanent” loan. This type of loan covers building costs and converts to a regular mortgage once the home is ready for occupancy. While the home is being built, the loan acts like a line of credit to fund the construction.

A one-time close construction loan is ideal because it covers both pre- and post- construction financing. There’s only one application and one closing, making the process of new construction completely easy.

La Jolla new construction contractor

La Jolla new construction contractor

Here’s how payments work on construction-to-permanent loans. Buyers typically make interest-only payments during the construction phase on the amount used to build the home. Then, once the home is complete, the payment simply reverts to a regular mortgage payment.

Another nice feature of a one-time close construction loan is the ability to secure rates. In today’s rising interest rates and increased demand on property in San Diego, you can lock in your rate from the time of application – pre-construction – with other desirable terms like a 30-year, fixed rate mortgage.

We work with many different lenders to complete new construction throughout the La Jolla and greater San Diego area. When it comes to building your dream home, don’t let logistics stop you. It can be simple, and we can help. For more info on working with us to build new construction in La Jolla, please feel free to give us a call at 858-405-0186 or log onto

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Posted by Social Media Staff on Oct 11, 2013. Filed under Columns, Scott Murfey, Sponsored Columns. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

1 Comment for “Construction Loans Pave Way to Ideal La Jolla Dream Home”

  1. Carlynne Allbee

    I shook my head when I read the statement ” Then, once the home is complete, the payment simply reverts to a regular mortgage payment.” That only happens that smoothly IF the same company that issued the construction loan is the same one that will issue a traditional mortgage to you. Many of us rebuilding after the 2003 Cedar Fire found out that was not true. Our mortgage companies did NOT do construction loans and when our homes were complete, we then had to arrange a mortgage with a new company.

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