Dreaming about building on acreage in Livermore? Financing land, a private well, septic, and new construction does not follow the same playbook as a typical home loan. You want a clear plan, predictable costs, and confidence that lenders will say yes. In this guide, you’ll learn how financing works for land, wells and septic systems, and construction in Livermore, plus the key permits and steps to keep your project moving. Let’s dive in.
Start with jurisdiction and permits
Before you talk loans, confirm who regulates your parcel. In Livermore, jurisdiction can shift between city and county depending on location, which affects permits, inspections, and what lenders will require.
City vs. county: who to call
- If the property is inside city limits, the City of Livermore Permit Center handles planning and building approvals. Start with the Permit Center’s guidance on how to get a permit and confirm zoning and utilities are feasible. Visit the Livermore Permit Center.
- If the parcel is outside city limits, you’ll work with Alameda County. Use the County parcel viewer to confirm APN and jurisdiction, then coordinate with the county programs noted below. Check the Alameda County parcel viewer.
- For private wells, permitting and standards are administered by Alameda County Public Works and, by location, Zone 7. Review the County Well Program.
- For septic systems, the Alameda County Department of Environmental Health (ACDEH) runs the Onsite Wastewater Treatment Systems program, including site evaluations and permits. See ACDEH’s OWTS program.
Sewer availability in South Livermore
City-led sewer expansions in parts of South Livermore have changed what some parcels can or must connect to. Always verify current sewer and water availability for your specific lot, since this can affect both permits and loan approval.
How to finance the land
Vacant land loans in Livermore
Land loans are different from standard mortgages. Lenders view vacant land as higher risk, so they often ask for larger down payments, shorter terms, and higher rates than for a home loan. Expect underwriting questions about access, utilities, and whether well and septic are feasible for building. Learn how land loans work.
Other ways to buy the lot
Some buyers use cash, a HELOC on another property, or private or seller financing to acquire the land, then shift to construction financing later. Terms vary by lender, so compare carefully and review any balloon features or prepayment rules.
Well and septic: what lenders expect
Private wells
Lenders and appraisers typically require proof of safe, reliable water. Plan on a well permit, completion report, and water testing, plus a pumping test if requested by your lender. Setback rules and construction standards must meet local health codes, and if public water is reasonably available, some programs may require connection. See the Alameda County Well Program.
Septic systems
If the property will use an onsite septic system, ACDEH generally requires a site evaluation and a septic permit before installation or expansion. Many lenders look for a county acceptance letter or permit evidence to confirm the site can support the system needed for your home. Review ACDEH’s OWTS guidance.
Shared wells and easements
If a well is shared, lenders and title will expect a recorded agreement that spells out access, maintenance, and cost sharing. Unclear or unrecorded agreements can slow or stop financing, so make sure the paperwork is complete.
Construction financing options
Two-close vs. one-time close
- Two-close construction loan: You obtain a short-term construction loan, build, then refinance into a permanent mortgage when the home is complete.
- One-time close construction-to-permanent: You close once, and the loan converts to a mortgage after completion. Conventional single-closing programs have specific documentation, builder, and appraisal requirements. See Fannie Mae’s single-close guidance.
FHA and VA paths
- FHA One-Time Close can reduce the required down payment for eligible primary residences while still meeting FHA property standards during and after construction. Availability depends on participating lenders. Explore FHA One-Time Close basics.
- VA construction-to-permanent loans can offer up to 100 percent financing for eligible veterans, subject to VA guidelines and lender participation. Approved builders and program-compliant plans are required. Learn about VA construction loans.
Appraisals, draws, and documentation
For construction loans, appraisals are often based on the completed home. Expect to provide plans, specs, a builder contract, and cost breakdowns. Lenders fund in draws tied to progress inspections, so align your builder’s schedule with lender requirements.
Budget basics for acreage
Building on acreage involves more site work and due diligence. Create a realistic budget that includes these items:
- Land loan or cash to acquire the parcel, plus closing costs.
- Site work and utilities: driveway, grading, trenching, electrical, and gas or propane as needed.
- Water: drilling and completing a residential well can range from roughly $3,500 to $25,000 or more depending on depth and geology. View typical well cost ranges.
- Wastewater: septic design and installation costs vary widely based on soils, size, and system type. Engineered systems for difficult sites can be significantly more.
- Professional and permit fees: site evaluations, surveys, soils or perc testing, engineered septic design, and county or city permits.
- Construction loan costs: higher interim interest rates during the build, draw inspection fees, and cash reserves if required by your lender.
- Contingency: set aside funds for surprises, often 10 to 20 percent of your construction budget.
Your step-by-step roadmap
Confirm jurisdiction and utilities. Identify whether the parcel is in the City of Livermore or unincorporated Alameda County. Check zoning, access, and whether public water or sewer is required or available. Start with the City Permit Center or County contacts as appropriate.
Validate well and septic feasibility. For private wells, review the County Well Program and plan for permits and testing. For septic, schedule an ACDEH site evaluation early and understand the likely system type and location.
Match the loan to the lot. If buying land first, compare vacant land loans. If building right away, ask lenders about one-time close versus two-close construction options, plus FHA or VA programs if you are eligible.
Assemble documents. Collect well logs, water-quality and pump-test results, septic permits or acceptance letters, and any recorded easements, including shared-well agreements.
Select a qualified builder. Lenders typically require a licensed, insured general contractor and a fixed-price contract with a draw schedule tied to inspections.
Finalize appraisal and draws. Provide plans and specs for an as-completed appraisal, then align inspection milestones with your lender’s draw process.
Keep agencies and lender in sync. Coordinate inspections and approvals with the City or County as you progress, and share key approvals with your lender to avoid funding delays.
Seller tips for acreage
- Gather system records. Provide well completion reports, recent water tests, and any pump-test results. For septic, share permit history, inspection or pumping records, and any site evaluation documents.
- Clarify shared resources. If a well is shared, make sure the agreement is recorded and clearly outlines access and maintenance.
- Reduce risk for buyers. Clean, complete documentation can expand your buyer pool and help more loan programs qualify your property.
FAQs
What financing options can I use to buy land in Livermore?
- Many buyers use vacant land loans, which usually require larger down payments and shorter terms than standard mortgages. Some buyers use cash, HELOCs, or private financing depending on their situation.
How do lenders evaluate private wells on acreage near Livermore?
- Lenders typically ask for a well permit or completion report, water-quality testing, and sometimes a pumping test, and they expect the well to meet local setback and construction standards.
What does Alameda County require for septic on rural parcels?
- ACDEH generally requires a site evaluation and a septic permit before installation or expansion, and many lenders want to see an acceptance letter or permit evidence during underwriting.
What is a one-time close construction loan?
- It is a single loan that funds construction and then converts to a permanent mortgage after completion, which can simplify closing and underwriting compared with a two-loan approach.
Can veterans finance land and construction together in Livermore?
- Eligible veterans may use VA construction-to-permanent financing with participating lenders, subject to VA guidelines, approved builders, and program documentation.
Ready to map a clean path from land to move-in day? Start a personalized plan with The Kristy Peixoto Team and put 25+ years of local acreage expertise to work for you.
