Question 1

How long does construction loan approval take in Covina?

Accepted Answer

Approval typically takes 30 to 45 days with complete documentation. Having detailed plans, contractor bids, and financial records ready accelerates the process significantly.

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. Owner-builder loans often require more equity and construction experience documentation.

Question 3

What happens if construction costs exceed the loan amount?

Accepted Answer

You must cover cost overruns with additional equity or savings. Lenders base loan amounts on approved plans and budgets, with limited flexibility for increases.

Question 4

Do construction loans cover land purchase in Covina?

Accepted Answer

Some construction loans include land acquisition costs if you don't own the lot. Alternatively, you can use a separate land loan or bridge loan first.

Question 5

What interest rate should I expect for construction financing?

Accepted Answer

Rates vary by borrower profile and market conditions. Construction loan rates typically run higher than conventional mortgages due to increased lender risk during building.

Construction Loans in Covina: Build Your Dream Home with Expert Financing