San Diego’s new construction landscape splits along geographic lines. In the coastal zone — Pacific Beach, Point Loma, and the La Jolla coastal corridor — any new build or major remodel falls under California Coastal Commission permitting in addition to standard city review, a process that can add six to eighteen months to a construction timeline. Inland, master-planned communities like Del Sur, Pacific Highlands Ranch, Otay Ranch, and Eastlake offer a very different path: newer infrastructure and amenities, but with Mello-Roos special tax assessments that can add $500 to $10,000 or more per year on top of standard property taxes, a cost that varies significantly by community and should factor into your total payment calculation. Custom estate lots in Rancho Santa Fe and Poway’s hillside areas add a third consideration: fire-hardened Wildland-Urban Interface construction standards, adopted regionally following the 2003 Cedar Fire and 2007 Witch Fire.
Given how many moving pieces are involved in a San Diego build — Coastal Commission review, Mello-Roos disclosure, fire-hardening requirements, or, for eligible veterans, VA construction eligibility — a One-Time Close structure that combines construction and permanent financing into a single closing removes one major variable from an already complex process.
A One-Time Close Construction loan combines your construction financing and your permanent mortgage into a single closing, structured in three phases:
Construction Phase: Funds are disbursed in draws as your project is built, whether that's a coastal-zone rebuild moving through Coastal Commission review or a custom home in a master-planned community.
Conversion Phase: Once construction is complete and the certificate of occupancy is issued, the loan converts automatically into permanent financing — no second closing, no second round of underwriting or appraisal.
Permanent Phase: You begin making standard mortgage payments on the converted loan, at the rate and terms locked in from the start.
Key Features:
Single closing covers both construction and permanent financing
Rate can be locked before construction begins, reducing exposure to rate movement during extended coastal permitting timelines
Draw schedules structured around your builder's timeline, including Coastal Commission phases where applicable
VA One-Time Close available for eligible veterans, with no county loan limit
Eliminates the cost of a second set of closing fees
For construction projects within or near San Diego County’s conforming loan range, often in inland master-planned communities.
Given San Diego’s $1,104,000 conforming limit and the pricing common in coastal-zone and custom-estate construction, most San Diego builds in La Jolla, Point Loma, or Rancho Santa Fe require Jumbo-level One-Time Close financing.
For eligible veterans and active-duty service members building in San Diego, VA loans carry no county loan limit — highly relevant given the region’s substantial military population connected to Naval Medical Center San Diego and the area’s naval and Marine Corps installations.
For buyers building custom estates in Rancho Santa Fe or Fairbanks Ranch, with draw schedules built around fire-hardened construction requirements and your specific builder’s timeline.
Del Sur, Pacific Highlands Ranch, Otay Ranch, and Eastlake
Master-planned communities with newer infrastructure and amenities, carrying Mello-Roos special tax assessments that buyers should factor into total monthly costs; by contrast, established neighborhoods like La Jolla, Point Loma, and North Park carry no Mello-Roos.
Coastal-zone corridors (Pacific Beach, Point Loma, La Jolla coastal areas)
Subject to California Coastal Commission permitting on top of city review, typically adding six to eighteen months to project timelines; builders with established Coastal Commission experience hold a meaningful advantage here.
Rancho Santa Fe and Poway hillside areas
Inland luxury enclaves where fire-hardened, Wildland-Urban Interface construction standards apply, a direct response to the 2003 Cedar Fire and 2007 Witch Fire.
Experience financing both coastal-zone rebuilds and inland master-planned community construction
Jumbo and VA One-Time Close structuring for San Diego's above-conforming construction costs
Rate-lock strategy that accounts for California Coastal Commission review timelines
Direct coordination with builders on draw schedules, including fire-hardened construction requirements
Understanding of how Mello-Roos assessments affect total payment calculations for new-build communities
Ryan Lehrman, NMLS #235295
Credit profile: Generally 700+ credit score, higher for Jumbo-level construction amounts
Down payment or equity: Typically 10-20% for the combined land and construction budget, or as low as 0% for eligible VA borrowers
Builder verification: Confirmation of your contractor's license, project plans, and permit status, including Coastal Commission approval where applicable
Reserves: Sufficient liquid reserves to cover extended coastal permitting timelines or standard inland construction schedules
Initial consultation — We review your project, location, and total budget, including land, permitting, and construction.
Pre-approval and rate lock — We lock your rate structure before construction begins, protecting you from rate movement during your build.
Draw coordination — I work directly with your builder to structure disbursements against the applicable permitting schedule, whether Coastal Commission review or standard city process.
Completion and conversion — Once your home receives its certificate of occupancy, the loan converts to permanent financing with no second closing.
Permanent phase begins— You move into standard mortgage payments on the terms locked in from day one.
Yes. VA loans carry no county loan limit for eligible borrowers with full entitlement, which is particularly relevant given San Diego's substantial military population connected to Naval Medical Center San Diego and the region's naval and Marine Corps installations.
Yes. I structure One-Time Close construction loans for physicians using contract-based income qualification, the same approach used on our Physician Mortgage Loans page, so your build timeline can align with your start date at UC San Diego Health, Rady Children's, or Scripps.
Coastal-zone projects require California Coastal Commission review on top of standard city permitting, which can add six to eighteen months to your timeline, while master-planned inland communities move faster but carry Mello-Roos special tax assessments that add to your monthly carrying costs. I structure financing and draw schedules differently for each scenario.
In many cases, yes. Following the 2003 Cedar Fire and 2007 Witch Fire, Wildland-Urban Interface construction standards apply to many inland hillside areas, and I coordinate with your builder to make sure your construction budget and draw schedule account for these requirements from the start.
Building your new home in San Diego starts here. Let’s talk through your builder, your site, and your timeline.
Originally from Harrisburg, Pennsylvania, I moved to Phoenix to attend Arizona State University and have proudly called Phoenix home ever since.
My journey into the mortgage industry began with a friend’s encouragement, who saw how my energy and people-first mindset could make a difference. He was right — I found my calling.
I’ve always embraced what makes me different. With ADHD as my secret weapon, I thrive in fast-paced, detail-heavy environments. I’ve built my career on clear communication, creative problem-solving, and putting clients first, always.
Outside of work, my greatest motivation is my wife and three amazing kids. I’d be honored to help guide you through your lending journey with care, clarity, and commitment.
Who we are
Our website address is: https://loansbylehrman.com/
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