Question 1

How does a construction loan work in Union City?

Accepted Answer

You draw funds in stages as the build progresses. 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 want 680 or higher. Some programs allow lower scores with stronger compensating factors.

Question 3

Can I use a construction loan for a tear-down rebuild?

Accepted Answer

Yes. Many lenders in Alameda County handle tear-down rebuilds. Expect the existing structure to affect the appraisal process.

Question 4

What is a one-time-close construction loan?

Accepted Answer

It combines the construction loan and permanent mortgage into one closing. You avoid paying closing costs twice.

Question 5

How long are construction loan terms in California?

Accepted Answer

Build phases typically run 12 months. Some lenders extend to 18 months for complex projects.

Question 6

Do construction loan rates differ from purchase rates?

Accepted Answer

Yes. Construction loans carry higher rates during the build. Rates vary by borrower profile and market conditions.

Construction Loans in Union City, CA