Question 1

How much down payment do I need for a Larkspur construction loan?

Accepted Answer

Most lenders require 20-25% down. If your total project exceeds $2 million, expect 25% minimum and substantial reserves for cost overruns.

Question 2

Can I use a construction loan for a major renovation in Larkspur?

Accepted Answer

Yes, renovation construction loans work for gut rehabs or additions. You need detailed contractor bids and plans showing the scope of work before approval.

Question 3

What happens if my Larkspur build goes over budget?

Accepted Answer

You cover overruns from reserves—lenders won't increase funding mid-project. Budget 15-20% contingency for hillside builds where surprises are common.

Question 4

How long does a construction loan approval take in Marin County?

Accepted Answer

Expect 30-45 days from application to approval. You need permitted plans, contractor agreements, and detailed budgets before we can start underwriting.

Question 5

Do I make payments during the construction phase?

Accepted Answer

You pay interest only on funds drawn during construction. Once the build completes, the loan converts to principal and interest payments like a standard mortgage.

Question 6

Can I act as my own general contractor to save money?

Accepted Answer

Some lenders allow owner-builders but require construction experience and higher down payments. Most demand licensed general contractors with Marin project history.

Construction Loans in Larkspur: Finance Your Custom Build in Marin County