Question 1

Can I be my own general contractor in Maricopa?

Accepted Answer

Almost no lender allows owner-builder on construction loans. You need a licensed GC. Some hard money lenders allow exceptions, but rates reflect the added risk.

Question 2

How do construction loan draws work?

Accepted Answer

Lenders release funds in stages tied to completed work. An inspector verifies each phase before the next draw is released.

Question 3

Does USDA cover new construction in Maricopa?

Accepted Answer

Maricopa's rural designation makes it eligible to check. Income limits and site approval apply, so verify eligibility before assuming you qualify.

Question 4

What happens if my build goes over budget?

Accepted Answer

The lender won't automatically increase your loan. You cover overruns out of pocket, which is why a 10-15% contingency reserve is standard.

Question 5

How long does a construction loan last?

Accepted Answer

Most run 12 months. Some lenders offer 18-month terms. Extensions are possible but cost money and require lender approval.

Question 6

Do I make payments during construction?

Accepted Answer

Yes — interest-only payments on drawn funds during the build phase. Full principal and interest payments begin after conversion to permanent financing.

Construction Loans in Maricopa, Kern County CA