Question 1

How long does construction loan approval take in Novato?

Accepted Answer

Expect 45-60 days once you have approved plans and contractor bids. Lenders review your build budget line by line before committing funds.

Question 2

Can I act as my own general contractor?

Accepted Answer

Most construction lenders require a licensed general contractor. Owner-builder loans exist but come with higher rates and bigger down payments.

Question 3

What happens if construction costs exceed my budget?

Accepted Answer

You fund overruns out of pocket. Lenders base the loan on appraised as-completed value, and they won't increase funding mid-project.

Question 4

Do construction loans cover land purchase?

Accepted Answer

Yes, if you use a one-time-close loan. The lender finances both land acquisition and construction, converting to permanent financing when the home is complete.

Question 5

How do draw schedules work during construction?

Accepted Answer

Lenders inspect progress at each phase and release funds based on completion percentages. Typical draws occur at foundation, framing, drywall, and final completion stages.

Construction Loans in Novato — Build Your Custom Home in Marin County