Question 1

What's the minimum down payment for construction loans in Ross?

Accepted Answer

Most lenders require 20-25% of the total project cost, including both land and construction. On a $5 million combined project, expect to bring $1-1.25 million in cash.

Question 2

Can I use my current home equity for the down payment?

Accepted Answer

Yes, many borrowers tap home equity for construction down payments. You'll carry two loans during the build, which affects your debt-to-income ratio and borrowing capacity.

Question 3

How do draw schedules work during construction?

Accepted Answer

Lenders release funds in stages as work completes, typically after third-party inspections verify progress. Most schedules include 5-7 draws tied to foundation, framing, mechanicals, and finishes.

Question 4

What happens if construction runs over budget?

Accepted Answer

You'll need to cover overruns with cash since lenders won't increase the loan mid-project. Budget an extra 10-15% contingency for Ross projects given strict building codes.

Question 5

Do construction loans convert automatically to mortgages?

Accepted Answer

Single-close loans convert when construction finishes without requalifying. Two-close loans require a second approval, but often offer lower initial rates during the construction phase.

Question 6

How long does construction loan approval take in Ross?

Accepted Answer

Expect 30-45 days from application to funding for straightforward projects. Complex builds or unconventional designs may take 60+ days as lenders review plans and appraisals.

Construction Loans in Ross — Finance Your Dream Build on Marin's Most Exclusive Properties