Question 1

What down payment do I need for a Fairfax construction loan?

Accepted Answer

Plan on 20-25% of total project cost, including land. That's higher than standard mortgages because lenders price for construction risk and potential delays.

Question 2

How long does construction loan approval take?

Accepted Answer

Figure 45-60 days with complete plans and permits. Incomplete documentation or permit uncertainties push timelines to 90+ days or kill deals entirely.

Question 3

Can I act as my own general contractor?

Accepted Answer

Some lenders allow it with construction experience and detailed plans. Most require licensed general contractors to protect their investment and manage draw schedules.

Question 4

What happens if construction runs over budget?

Accepted Answer

You cover overruns with cash or the project stalls. Lenders fund only the approved budget, so realistic estimates and contingency reserves matter.

Question 5

Do construction loans cover land purchase?

Accepted Answer

Yes, if you're buying land to build immediately. You can finance both in one loan rather than purchasing land separately then refinancing into construction.

Question 6

What rates should I expect in Fairfax?

Accepted Answer

Construction loans typically run 7-9% for qualified borrowers. Rates vary by borrower profile and market conditions, with hillside complexity adding cost.

Construction Loans in Fairfax: Financing Custom Builds in Marin's Most Creative Town