Question 1

How long does construction loan approval take in Lafayette?

Accepted Answer

Expect 30-45 days for approval once you have contractor bids and approved plans. Permit delays add months, not the loan itself.

Question 2

Can I act as my own general contractor?

Accepted Answer

Some lenders allow owner-builders with construction experience, but most require licensed general contractors. Your rate may increase 0.5-1% for owner-builder deals.

Question 3

What happens if construction costs exceed my loan amount?

Accepted Answer

You pay overages out of pocket before the lender releases final funds. This is why we recommend borrowing for 120% of estimated costs upfront.

Question 4

Do construction loans cover land purchase and building costs?

Accepted Answer

Yes, if you don't own the lot yet. You need 20-25% down on the combined land and construction costs.

Question 5

How do draw inspections work during construction?

Accepted Answer

Lenders send inspectors at each phase—foundation, framing, mechanicals, final. They release funds only after verifying completed work meets plans.

Construction Loans in Lafayette: Finance Your Custom Build or Major Renovation