Question 1

Can I build a home in Fortuna with a construction loan?

Accepted Answer

Yes, but lender options are more limited in Humboldt County. A broker with rural lending access makes a real difference here.

Question 2

What's the difference between one-time and two-time close?

Accepted Answer

One-time close locks your permanent rate before construction starts. Two-time close requires a second closing — and a new rate — when the build finishes.

Question 3

Do I need a licensed contractor to get approved?

Accepted Answer

Yes. Every construction lender requires a licensed, insured contractor. Owner-builders face much tighter restrictions and many lenders won't do it.

Question 4

How do construction loan draws work?

Accepted Answer

Funds are released in stages as construction milestones are completed. The lender typically sends an inspector to verify progress before each draw.

Question 5

How long does a construction loan term last?

Accepted Answer

Build phases typically run 9 to 12 months. The loan then converts to a permanent mortgage, or you refinance into one.

Question 6

Are construction loan rates higher than regular mortgage rates?

Accepted Answer

Yes, the construction phase carries a higher rate than permanent financing. Rates vary by borrower profile and market conditions.

Construction Loans in Fortuna, CA — Build It Right