Question 1

How long does a construction loan last in Alameda?

Accepted Answer

Many construction loans run 12 to 18 months. Alameda projects can take longer than borrowers expect, so it helps to build time cushion into the plan.

Question 2

Can I act as my own general contractor?

Accepted Answer

Sometimes, but it is uncommon. Most lenders prefer a licensed builder with a track record they can review.

Question 3

Do I pay the full loan amount upfront?

Accepted Answer

No. Construction funds are usually released in stages as the work is completed, and borrowers often pay interest only on the amount already drawn.

Question 4

What happens when construction is done?

Accepted Answer

Many construction loans convert into a permanent mortgage once the project is complete. One-time-close structures handle that conversion without a second closing.

Question 5

Does my builder need lender approval?

Accepted Answer

Usually, yes. The lender typically reviews the builder's license, insurance, and experience before the loan is finalized.

Question 6

Are construction loan rates higher than regular mortgage rates?

Accepted Answer

Usually, yes. Construction financing carries more moving parts and more risk than a standard purchase mortgage, so the pricing is typically higher.

Construction Loans in Alameda Work Best When the Build Plan Is Already Tight