Rancho Santa Fe

Yes, Element Homes is completely licensed and insured. All subcontractors are fully licensed, bonded and insured. All our subcontractors are also local workers from your city, familiar with local rules and regulations.The state government of California requires all businesses who build homes, commercial buildings or other structures on either private or public land to be licensed by the CSLB. The company’s California Contractors State License Board CSLB License Number is #1058250. You can check out our license through the Department of Consumer Affairs Contractors State License Board website here. 

The cost to build a custom home varies across California because the going rate for labor and materials differs from city to city. Custom homes typically cost more per square foot to construct than model or tract homes. However, upgrades often found in custom homes -- like passive house elements, off-grid capabilities and more -- can actually save the homeowner money in the long run. In our article “Is it Cheaper to Build or Buy a Home?,” we noted that it might still be cheaper to build a custom home than to buy a pre-built house in California.

This is because inventory of available homes on the market is low while demand is high. For example, the current cost per square foot for a single family home in Rancho Santa Fe, California is $986 according to Realtor.com. A custom home might cost anywhere from $300 to $1,000 per square foot to build. Though the cost of building materials like steel, concrete and lumber hit record highs earlier this year, the cost of building materials has since gone down. As such, it could be less expensive to build a custom home in California than to buy one. Learn more about the cost to build or buy a home in your area by searching the locations Element Homes serves.

It is typically more difficult to secure a construction loan for a luxury home than to secure a mortgage for a pre-built home. In his article “How to Get a Construction Loan to Build a Home” for NerdWallet, Certified Financial Planner Hal M. Bundrick explains. Bundrick notes that banks are more selective when approving construction loans because they are “taking extra risk during the building phase, since there isn’t an asset to secure the mortgage.” However, notes mortgage loan officer Jerry Thomas, “‘if you can put 20% down and you have a 720 credit score or better, you know you're pretty much going to qualify for everybody's program.’”

Types of Construction Loans in California

According to Kiah Treece and Mike Cetera in their article “Your Guide To Construction Loans” for Forbes, there are four types of construction loans available to California homeowners. These include construction-to-permanent loans, construction-only loans, owner-builder loans and renovation loans. Treece and Cetera write that a construction-to-permanent loan “finances construction of a home and then converts into a fixed-rate mortgage once the home is completed.” With a construction-only loan, the lender “issues a short-term, adjustable-rate loan that is used to complete construction of a home.” Once the home has been built, “the loan must be paid in full or refinanced into a mortgage.”
‍
Owner-builder loans are only issued to owners who plan to act as the general contractor for their build. As such, owner-builder loans are “only available to owners who can demonstrate experience as a homebuilder or have a contractor’s license.” Last on our list is the renovation loan. Cetera and Treece write that renovation loans are “most akin to a traditional mortgage” because they are “based on the anticipated value of the home after renovations.” There are quite a few home improvement loans available to California homeowners. These include cash-out refinancing, FHA 203(k) rehab loans, home equity loans, home equity lines of credit and personal loans

The good news is that working with a design-build firm ensures your entire project is completed under a single contract. This means that we at Element Homes can provide you with one timeline and budget estimate that we promise to stick to. If there are any delays or added expenses, we will notify you immediately.

The timeline for building a custom home in any city or neighborhood in California can vary widely. There are a number of elements that can impact a build timeline, from the time it takes to source certain building materials to the availability of utilities at the site. Ease of accessibility to the site can also extend the build timeline. In her article “How Long Does It Take to Build a House?” for Realtor.com, Margaret Heidenry writes that a “ballpark average time for building a new home is four months if you have the pedal to the metal.” She identifies the keys to successfully building a new home as “having approved house building permits, a process that can take a long time in some areas.”

Elements that Might Impact the Build Timeline

Because our team is local to California, Element Homes understands the permitting process. Our team members Rahul -- Head of Operations -- and Rucha -- Head of Architecture & Planning -- can answer any questions you might have about the permitting process. Rahul has a Masters degree in Civil Engineering while Rucha has almost a decade of experience in the industry. Rucha is always up-to-date with local ordinances, government regulations and city requirements. 

As for the cost of permitting, this might vary somewhat depending on your area. However, HomeAdvisor’s 2021 Cost Guide for building permits estimates most homeowners will spend between $423 - $2,264. You can find out more about the cost of building permits in the San Francisco Bay Area by visiting the San Francisco Department of Building Department website here. If you plan to build in the Greater Los Angeles Area, you can find out more about the cost of permits from the City of LA Department of Building and Safety website here. According to the LA County Department of Public Works, homeowners must apply for “building, electrical, plumbing and mechanical permits [in order] to build a new house.” Additional permits like grading permits might also be required depending on the type of build.