Question 1

How does a construction loan work in Taft?

Accepted Answer

You draw funds in stages as building hits milestones. At completion, the loan converts to a standard mortgage.

Question 2

Can I use a construction loan to build on my own land in Kern County?

Accepted Answer

Yes. Owned land can often count toward your equity requirement. Tell your lender upfront — it changes the loan structure.

Question 3

What credit score do I need for a construction loan?

Accepted Answer

Most lenders require a 680 minimum. Higher scores get better rates. Rates vary by borrower profile and market conditions.

Question 4

Do I need a licensed contractor for the build?

Accepted Answer

Yes. Lenders require a licensed, insured general contractor. Owner-builder loans exist but are rare and harder to qualify for.

Question 5

What is a one-time-close construction loan?

Accepted Answer

It combines the construction and permanent loan into one closing. You avoid a second round of closing costs at completion.

Question 6

What happens if my build goes over budget in Taft?

Accepted Answer

Cost overruns come out of your pocket — lenders won't increase the loan mid-build. Always budget a 10-15% contingency.

Construction Loans in Taft, CA — Build Instead of Buy