Question 1

How long does construction loan approval take in Beverly Hills?

Accepted Answer

Expect 45-60 days for construction loan approval. This includes plan review, contractor verification, and appraisal. Complex luxury projects may require additional time for underwriting.

Question 2

Can I act as my own general contractor with a construction loan?

Accepted Answer

Some lenders allow owner-builders, but most require licensed general contractors for Beverly Hills projects. Lenders want experienced professionals managing high-value construction.

Question 3

What happens if construction costs exceed my loan amount?

Accepted Answer

You must cover cost overruns with personal funds. Lenders fund only the approved loan amount. Always include contingency funds in your budget for unexpected expenses.

Question 4

Do construction loans cover land purchase in Beverly Hills?

Accepted Answer

Yes, some construction loans include land acquisition costs. You can also secure lot financing separately, then refinance into construction financing. Each approach has different requirements.

Question 5

What interest rate should I expect on a Beverly Hills construction loan?

Accepted Answer

Rates vary by borrower profile and market conditions. Construction loans typically run 0.5-1.5% higher than conventional mortgages. Your credit, down payment, and project details determine your specific rate.

Construction Loans in Beverly Hills: Build Your Dream Home with Expert Financing