Question 1

How does a construction loan work in Oakland?

Accepted Answer

The lender releases funds in stages as construction milestones are hit. At completion, the loan converts to a permanent mortgage.

Question 2

What credit score do I need for a construction loan?

Accepted Answer

Most lenders require at least 680. A 720+ score opens up better rates and more program options.

Question 3

Can I build an ADU in Oakland with a construction loan?

Accepted Answer

Yes. ADU construction loans are available and increasingly common in the East Bay. Requirements mirror standard construction loans.

Question 4

How long does a construction loan last?

Accepted Answer

Most run 12 months. Oakland's permitting delays can stretch timelines — confirm your lender allows extensions.

Question 5

Do I need a licensed contractor to get approved?

Accepted Answer

Yes. Lenders require a signed contract with a licensed, insured builder before funding. Owner-builder exceptions are rare.

Question 6

What happens if my build goes over budget?

Accepted Answer

Lenders won't automatically cover overruns. You'll need cash reserves or a contingency line built into your loan from the start.

Construction Loans in Oakland, CA — Build or Renovate Right