Question 1

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

Accepted Answer

Most lenders require 20-25% of total project costs, including land, materials, labor, and contingency reserves. If you own the lot free and clear, equity can substitute for part of the down payment.

Question 2

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

Accepted Answer

Some lenders allow owner-builder arrangements if you document construction experience and provide detailed subcontractor bids. Expect stricter draw schedules and higher down payment requirements.

Question 3

What happens if my Parlier build goes over budget?

Accepted Answer

Lenders fund only the approved loan amount. Cost overruns require out-of-pocket cash or project scope reductions. We require 10-15% contingency buffers upfront to avoid mid-build funding gaps.

Question 4

How do construction loan interest rates compare to regular mortgages?

Accepted Answer

Construction loans typically run 0.5-1% higher than conventional mortgages during the build phase. Construction-to-permanent products lock your final rate at closing, protecting against increases during construction.

Question 5

Do Parlier construction loans cover septic system and well installation?

Accepted Answer

Yes, infrastructure costs are included in total project budgets. Lenders require contractor bids for septic and well work before approving the loan. Fresno County permits must be secured before first draw.

Construction Loans in Parlier: Build Your Vision with Flexible Financing