Question 1

Can I use a construction loan on a historic Ferndale property?

Accepted Answer

Yes, but major renovations on historic structures face additional review. Historic designation can limit scope and affect appraisal.

Question 2

How do construction loan draws work?

Accepted Answer

Lenders release funds in stages tied to build milestones. An inspector verifies progress before each draw is released.

Question 3

Do I pay the full mortgage during construction?

Accepted Answer

No. You pay interest only on drawn funds during the build. Full payments begin after the loan converts to permanent financing.

Question 4

What if my build goes over budget in Humboldt County?

Accepted Answer

Cost overruns are your responsibility. Build in a 10-15% contingency from the start — rural builds in Humboldt often run over.

Question 5

Can I be my own general contractor in Ferndale?

Accepted Answer

Some lenders allow owner-builder loans, but most require a licensed GC. Expect fewer options and stricter terms if you self-build.

Construction Loans in Ferndale, CA: Build Here