Question 1

How long does construction loan approval take in Moraga?

Accepted Answer

Approval typically takes 30-45 days with complete documentation. This includes time for lender review of plans, contractor verification, and appraisal of the proposed finished home.

Question 2

What happens if construction takes longer than expected?

Accepted Answer

Most lenders allow extensions with additional fees, but extended timelines can trigger rate adjustments. Building realistic contingency time into your schedule helps avoid these complications.

Question 3

Can I act as my own general contractor in Moraga?

Accepted Answer

Owner-builder projects are possible but require proven construction experience and often face higher down payment requirements. Most lenders prefer licensed general contractors for loan approval.

Question 4

How do interest payments work during construction?

Accepted Answer

You typically pay interest only on funds already disbursed during construction. Once the project completes and converts to permanent financing, you begin standard principal and interest payments.

Question 5

What if my contractor goes out of business mid-project?

Accepted Answer

Quality lenders verify contractor credentials and may require completion bonds. Having a contingency fund and vetting your builder thoroughly before starting protects against this scenario.

Construction Loans in Moraga: Finance Your Custom Build or Major Renovation Project