Question 1

How does a construction loan work in San Anselmo?

Accepted Answer

The lender releases funds in draws as construction milestones are met. At completion, the loan converts to a permanent mortgage.

Question 2

What credit score do I need for a construction loan?

Accepted Answer

Most lenders want 680 or higher. Stronger credit means better rates — rates vary by borrower profile and market conditions.

Question 3

How long do construction loans last?

Accepted Answer

Typical terms run 12 to 18 months. Given Marin County permit timelines, ask about extension options before you sign.

Question 4

Can I use a construction loan for a major renovation?

Accepted Answer

Yes. Major structural renovations can qualify. The lender will require detailed plans, permits, and a licensed contractor.

Question 5

Do I make payments during construction?

Accepted Answer

You pay interest only on the funds drawn. Full principal payments start when the loan converts to a permanent mortgage.

Question 6

What is a one-time-close construction loan?

Accepted Answer

It combines the construction loan and permanent mortgage into one closing. You avoid duplicate fees and a second qualification process.

Construction Loans in San Anselmo, CA