Question 1

How long does construction loan approval take in Huron?

Accepted Answer

45-60 days from application to closing. Lenders need time to review plans, verify contractor credentials, and appraise the completed value.

Question 2

What happens if construction costs exceed the loan amount?

Accepted Answer

You pay overages out of pocket before conversion. Lenders fund only the approved budget—cost overruns are your responsibility.

Question 3

Can I act as my own general contractor?

Accepted Answer

Most lenders require licensed general contractors. Owner-builder loans exist but need substantial construction experience and higher down payments.

Question 4

How do draw requests work during construction?

Accepted Answer

Submit requests with contractor invoices at completion stages. Lender inspects progress, then releases funds directly to builder or your account.

Question 5

What rates should I expect on construction loans?

Accepted Answer

Rates run 0.5-1% higher than conventional mortgages during construction. They adjust to standard rates when converting to permanent financing.

Construction Loans in Huron: Build Your Property With Expert Financing