Question 1

How long does a construction loan last in El Centro?

Accepted Answer

Most construction loans run 12 months with a 6-month extension option. Desert climate means no winter delays, but summer heat and permit timelines affect your build schedule.

Question 2

What happens if construction costs exceed my loan amount?

Accepted Answer

You pay overages out of pocket before the lender releases the final draw. This is why experienced brokers push for 15% contingency in your initial budget.

Question 3

Can I act as my own general contractor?

Accepted Answer

Some lenders allow owner-builder projects, but most require licensed contractors with three years of experience. Owner-builder loans typically need 25-30% down instead of 20%.

Question 4

Do I make payments during construction?

Accepted Answer

You pay interest only on drawn funds during the build. Once construction finishes and converts to permanent financing, you start making principal and interest payments.

Question 5

What credit score do I need for construction loans?

Accepted Answer

Minimum 680 for most lenders, but 700+ gets better rates and terms. Construction loans have stricter credit requirements than standard purchase mortgages.

Construction Loans in El Centro: Finance Your Build Without Guesswork