| At a Glance: Butte County residents have at least six solid paths to fund a new build from traditional bank loans and first-time buyer programs to wildfire recovery assistance. Local banks, Fannie Mae-backed lenders, the Town of Paradise First-Time Homebuyer Program, the ReCoverCA Homebuyer Assistance program, the Golden State Finance Authority, and certified Rebuild Advocates can each play a role in financing a home construction loan in Butte County. Trilogy breaks down all six below, plus answers the questions we hear most. |
Ready to fund the home you're building, buying, or rebuilding right here in Butte County? Good news: you've got more options than you might think. Trilogy has rounded up the top resources for home construction loans in Butte County, so you can spend less time Googling and more time picking out paint colors.
| If you're... | Consider... | Why it works |
|---|---|---|
| Already banking locally | A local bank construction loan | Personalized terms and a lender who already knows you |
| Buying your first home (or haven't owned one in 3+ years) | Town of Paradise First-Time Homebuyer Program | Deferred, low-interest gap loan; no monthly payments required |
| Working with a mortgage lender | Fannie Mae-backed financing | Widens the pool of loans your lender can offer you |
| Impacted by the Camp Fire or North Complex Fire | ReCoverCA Homebuyer Assistance | Up to $350,000 to help purchase a home outside a high fire severity zone |
| Living in an unincorporated part of the county | Golden State Finance Authority programs | Mortgage credit certificates, down payment assistance, multi-family financing |
| Overwhelmed by FEMA, SBA, or insurance paperwork | A Rebuild Advocate | Free, guided help through the entire rebuilding process |
Your bank is often the fastest place to start when you need a home construction loan in Butte County. If you think you want to buy or build a house, talk to your banker first and find out what they can do for you.
If this is your first home purchase, or you haven't owned a home in 3 or more years, it's worth looking into local first-time homebuyer loan programs. The Town of Paradise offers a deferred, low-interest "gap" loan to eligible first-time homebuyers as down payment assistance to purchase a home in Paradise. The loan amount is based on the difference between what you can afford and what the home costs—and because it's deferred, there are no monthly payments. The loan is due in 30 years, or sooner if the home is sold, vacated, or the title is transferred. Interest of 1% accrues for the first 10 years only.
Fannie Mae doesn't hand out loans directly, but it makes more home construction loans possible in Butte County by buying them from local lenders. Created by the federal government in 1938, Fannie Mae is a reliable source of mortgage financing for homeowners and homebuyers across the USA.
Lost a home to the Camp Fire or North Complex Fire? The ReCoverCA Homebuyer Assistance (DR-HBA) Program was built for you. Developed by the California Department of Housing and Community Development (HCD) and managed by the Golden State Finance Authority, this program provides up to $350,000 to help income-eligible households purchase a home. The assistance is structured as a second mortgage that is fully forgiven after five years of ownership and occupancy.
Those in unincorporated areas of Butte County can also explore the Golden State Finance Authority's broader programs, which include mortgage credit certificates, additional down payment assistance, and multi-family financing options.
| Note: Disaster recovery funding programs in California change as rounds open and close. Always verify current availability and eligibility requirements directly with Butte County or your lender before applying. |
Feeling a little overwhelmed while navigating a sea of resources like insurance, FEMA, or SBA? Contact a Rebuild Advocate at the Town of Paradise. They can guide you through selecting a contractor (cough, may we suggest Trilogy Construction?), submitting plans, and other aspects of the rebuilding process.
If you're still deciding which home construction loan in Butte County is right for you, talk to your Trilogy team. We're happy to help you find the best home construction loans in Butte County for your situation.
Contact us today to get started!
What is a home construction loan?
A home construction loan funds the cost of building a new house. Funds are typically released in stages as construction progresses, rather than as one lump sum like a traditional mortgage.
How do I qualify as a first-time homebuyer in Butte County?
For the Town of Paradise program, you qualify if you haven't owned a home in the past three years—even if you've owned property before that window. Income limits based on federal guidelines also apply, and you'll need to work through a certified lender. Check the Town of Paradise website for the most current limits.
What is the Town of Paradise First-Time Homebuyer loan, exactly?
It's a deferred, low-interest "gap" loan, meaning the loan amount covers the difference between what you can afford and what the home costs. There are no monthly payments. The loan is due in 30 years or when the home is sold, vacated, or transferred. Interest of 1% accrues for the first 10 years only.
Can I get help buying a home if I lost mine in a wildfire?
Maybe! The ReCoverCA Homebuyer Assistance (DR-HBA) Program offers up to $350,000 to help Camp Fire and North Complex Fire survivors purchase a home outside a high fire severity zone in California. Eligibility requirements include income limits, a maximum 45% debt-to-income ratio, and an 8-hour homebuyer education course. The assistance is structured as a forgivable second mortgage after five years of ownership and occupancy.
Does Fannie Mae lend money directly to homebuyers?
No. Fannie Mae purchases loans from lenders rather than issuing them directly, which allows lenders to fund more home construction loans in Butte County.
What does a Rebuild Advocate do?
A Rebuild Advocate offers free guidance from the Town of Paradise through insurance claims, FEMA and SBA paperwork, contractor selection, and plan submission for households rebuilding after a disaster.
Where can I find construction loan programs if I live in an unincorporated part of Butte County?
The Golden State Finance Authority offers mortgage credit certificates, down payment assistance, and multi-family financing for residents in unincorporated areas. The Butte County Housing Programs page is also a good starting point for the full current list of available programs.
