Question 1

How long does construction financing last in Mammoth Lakes?

Accepted Answer

Most construction loans allow 12-18 months to complete your build. Mammoth's short construction season means you'll likely need 18 months to account for winter shutdowns.

Question 2

What happens if construction costs exceed my loan amount?

Accepted Answer

You must cover overruns with cash before lenders release final draws. This is why we recommend budgeting 15-20% above your contractor's estimate for Mammoth projects.

Question 3

Can I act as my own general contractor?

Accepted Answer

Some lenders allow owner-builders with construction experience and detailed project plans. Most require professional contractors due to the technical complexity of mountain builds.

Question 4

Do construction loans require property insurance during the build?

Accepted Answer

Yes, you need builder's risk insurance covering the structure during construction. Your contractor typically carries this, but the lender requires proof before funding draws.

Question 5

What interest rate should I expect on Mammoth construction loans?

Accepted Answer

Construction rates run 1-2% above permanent mortgage rates due to higher risk. Rates vary by borrower profile and market conditions, but expect 7-9% in current markets.

Construction Loans in Mammoth Lakes: Finance Your Mountain Build