Question 1

How do construction loan draws work in Walnut Creek?

Accepted Answer

Lenders release funds at specific completion stages verified by inspections. You typically get 4-6 draws: foundation, framing, mechanicals, completion.

Question 2

Can I act as my own general contractor?

Accepted Answer

Some lenders allow owner-builders, but most require licensed contractors with construction loan experience. Expect higher down payment requirements if you self-manage.

Question 3

What happens if construction costs exceed my loan amount?

Accepted Answer

You pay overruns out of pocket. Lenders won't increase the loan mid-project, which is why conservative budgeting with contingencies matters.

Question 4

How long does construction loan approval take?

Accepted Answer

Plan 45-60 days from application to funding. The process takes longer than purchase loans because lenders review plans, contracts, and builder qualifications.

Question 5

What interest rate should I expect during construction?

Accepted Answer

Construction phase rates run 1-2% above permanent mortgage rates. You pay interest only on drawn funds, not the total loan amount.

Construction Loans in Walnut Creek: Finance Your Build or Major Renovation