Question 1

How long does construction loan approval take in Commerce?

Accepted Answer

Approval typically takes 30 to 45 days, depending on project complexity and documentation completeness. Having detailed plans and contractor bids ready accelerates the process.

Question 2

What happens if my Commerce construction project goes over budget?

Accepted Answer

You'll need to cover overages from personal funds or seek additional financing. Lenders base loans on approved budgets and won't automatically increase funding mid-project.

Question 3

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

Accepted Answer

Some lenders allow owner-builders, but most require licensed contractors. Owner-builder loans typically have stricter requirements and higher down payments.

Question 4

What's the difference between construction-to-permanent and stand-alone loans?

Accepted Answer

Construction-to-permanent loans close once and convert automatically. Stand-alone loans require a second closing for permanent financing, adding costs and complexity.

Question 5

How are construction loan funds disbursed in Commerce?

Accepted Answer

Funds release in scheduled draws after inspections confirm completed work. Typical schedule includes foundation, framing, dried-in, and completion stages.

Construction Loans in Commerce, CA – Build Your Dream Property