Question 1

Can I use a construction loan to build an ADU in San Leandro?

Accepted Answer

Yes. ADU construction is a qualifying use. Lenders will want permits and licensed contractor plans before funding.

Question 2

What credit score do I need for a construction loan?

Accepted Answer

Most lenders require 680 or higher. Scores below that narrow your options and push rates up. Rates vary by borrower profile and market conditions.

Question 3

How does the draw schedule work?

Accepted Answer

Funds release in stages tied to completed milestones — foundation, framing, roofing, and so on. Your builder gets paid as work is verified.

Question 4

What is a one-time-close construction loan?

Accepted Answer

One loan covers the build and converts to your permanent mortgage at completion. You avoid two closings and two sets of closing costs.

Question 5

How long are construction loan terms in Alameda County?

Accepted Answer

Build phases typically run 12-18 months. Alameda County permitting delays are common, so factor that into your timeline upfront.

Question 6

Do I need to own land first to get a construction loan?

Accepted Answer

No. Many lenders offer combined land-and-construction loans. You can purchase the lot and finance the build under one loan structure.

Construction Loans in San Leandro, CA