Question 1

Can I owner-build in Piedmont without a contractor?

Accepted Answer

Most construction lenders require a licensed general contractor. Owner-builder loans exist but are rare and carry stricter underwriting.

Question 2

How do construction loan draws work?

Accepted Answer

Lenders release funds in stages tied to completed work. An inspector typically verifies progress before each draw is approved.

Question 3

Do I pay interest during construction?

Accepted Answer

Yes — you pay interest only on drawn funds during the build. Full principal payments start after conversion to permanent financing.

Question 4

What credit score do I need for a construction loan?

Accepted Answer

Most programs require 680 or above. Higher scores improve your rate and reduce required reserves at closing.

Question 5

How long does a construction loan term last in Piedmont?

Accepted Answer

Construction periods typically run 12 months. Piedmont's permit process can push timelines — confirm extension options upfront.

Question 6

Can I roll the construction loan into a jumbo mortgage?

Accepted Answer

Yes. Many Piedmont builds exit into jumbo financing. Work with a lender who can handle both phases without a full refinance.

Construction Loans in Piedmont, CA