Question 1

How does a construction loan work in Placerville?

Accepted Answer

You borrow against a draw schedule tied to build milestones. Funds release as work is completed and inspected.

Question 2

Can I be my own general contractor?

Accepted Answer

Most lenders require a licensed GC. Owner-builder programs exist but are rare and come with stricter requirements.

Question 3

What is a one-time-close construction loan?

Accepted Answer

It combines your construction financing and permanent mortgage into one closing. You avoid a second appraisal and second set of closing costs.

Question 4

Do construction loans cover land purchase?

Accepted Answer

Some do. If you don't already own the lot, certain programs roll land and construction costs into a single loan.

Question 5

How long does a construction loan last?

Accepted Answer

Typical terms run 12 months. Extensions are possible but cost extra — build your schedule with buffer time.

Question 6

Does wildfire risk in El Dorado County affect my loan?

Accepted Answer

Yes. Lenders require builder's risk insurance, and properties in high fire zones may face additional underwriting scrutiny.

Construction Loans in Placerville, CA — Build It Right