Question 1

Can I build on a lot I already own in Livermore?

Accepted Answer

Yes. Existing land equity can count toward your down payment. Lenders will appraise the lot and factor it into your total project value.

Question 2

What's a construction-to-permanent loan?

Accepted Answer

It's one loan that covers the build phase, then converts to a standard mortgage at completion. One closing, less paperwork, lower total cost.

Question 3

How do construction loan draws work?

Accepted Answer

Funds release in stages as construction hits milestones — foundation, framing, roofing, finish work. An inspector confirms progress before each draw.

Question 4

Do I make payments during construction?

Accepted Answer

Yes, but only interest on the funds drawn so far. Full principal-and-interest payments begin after the loan converts to permanent financing.

Question 5

What if construction costs go over budget?

Accepted Answer

Lenders don't cover overruns automatically. You'll need cash reserves or a contingency line. Budget at least 10-15% above your contractor's estimate.

Question 6

How long does a construction loan last in Livermore?

Accepted Answer

Most construction phases run 12-18 months. Alameda County permitting can stretch timelines, so build buffer into your schedule from day one.

Construction Loans in Livermore, CA