Question 1

What is a one-time close construction loan?

Accepted Answer

You close once, before construction starts. The loan converts to a permanent mortgage automatically when the build is complete.

Question 2

Can I act as my own general contractor in Albany?

Accepted Answer

Most lenders won't allow it. They require a licensed, insured contractor with a verifiable track record.

Question 3

How do construction loan draws work?

Accepted Answer

Funds release in stages as work is completed. A lender inspector verifies each phase before approving the next draw.

Question 4

Do I pay a full mortgage payment during construction?

Accepted Answer

No. You pay interest only on the funds drawn so far. Full principal and interest begin after conversion.

Question 5

How long can a construction loan term last?

Accepted Answer

Most terms run 12 months. Some lenders offer extensions, but those cost money and require justification.

Question 6

Does Albany's zoning affect my loan approval?

Accepted Answer

Yes. Lenders require permits and approvals before funding. Zoning issues discovered late can kill a deal.

Construction Loans in Albany, CA — Build What You Can't Buy