Question 1

How does a construction loan convert to a permanent mortgage?

Accepted Answer

At project completion, the loan automatically converts to a standard mortgage. You get one closing, one set of costs.

Question 2

Can I use a USDA loan to build in Greenfield?

Accepted Answer

Greenfield may qualify as a USDA rural area. That opens a construction-to-permanent option with lower down payment requirements.

Question 3

Do I make payments during construction?

Accepted Answer

Yes — interest-only payments on the funds drawn so far. Full principal payments start after conversion to permanent financing.

Question 4

What if my build goes over budget?

Accepted Answer

Overruns beyond your contingency require out-of-pocket funds. Lenders won't increase the loan mid-project without a full re-approval.

Question 5

How long does a construction loan term last?

Accepted Answer

Most construction phases run 12 months. Extensions are possible but cost money — keep your contractor on schedule.

Question 6

Does my contractor need lender approval in Monterey County?

Accepted Answer

Yes. Your builder must be licensed, insured, and approved by your lender. Start that process early — it takes time.

Construction Loans in Greenfield, CA — Build What You Can't Buy