Question 1

How much can I borrow for Brentwood construction?

Accepted Answer

Most lenders cap at 80% of projected appraised value, meaning you need 20% down plus cost overruns covered. Your lot equity counts toward that 20% if you already own the land.

Question 2

What happens if construction runs over budget?

Accepted Answer

You pay cost overruns out of pocket before the lender releases final draws. This is why experienced brokers push for 15-20% contingency in your initial budget.

Question 3

Can I act as my own general contractor?

Accepted Answer

Some lenders allow owner-builder setups but require construction experience and higher down payments. Most want to see at least two prior projects you managed to completion.

Question 4

When does my construction loan convert to a mortgage?

Accepted Answer

Conversion happens at final inspection and certificate of occupancy. Your rate was locked at loan approval, protecting you from market changes during the build.

Question 5

Do I need an appraisal before construction starts?

Accepted Answer

Yes, lenders order a subject-to-completion appraisal based on your plans and specs. That projected value determines your maximum loan amount and LTV ratio.

Construction Loans in Brentwood: Build Your East County Dream on Your Timeline