Question 1

How much down payment do I need for a construction loan in Kerman?

Accepted Answer

Most lenders require 20% down on the total project cost, including land and construction. Some programs go to 10% down with strong credit and builder history.

Question 2

Can I act as my own general contractor on a construction loan?

Accepted Answer

Few lenders allow owner-builder loans without contractor licensing. Those who do charge higher rates and require construction experience documentation.

Question 3

What happens if construction costs exceed my original budget?

Accepted Answer

You'll need to bring cash to cover overruns or reduce scope. Lenders won't increase loan amounts mid-project without new appraisals and approval.

Question 4

How long does construction loan approval take in Kerman?

Accepted Answer

Expect 45-60 days from application to first draw. Plan approval and permit timelines add months before you can start construction.

Question 5

Do construction loan rates differ from regular mortgage rates?

Accepted Answer

Construction phase rates run 0.5-1% higher than permanent rates. One-close loans lock your permanent rate upfront, protecting against increases during the build.

Construction Loans in Kerman: Finance Your Build From Ground Up