Question 1

How does a construction loan work in American Canyon?

Accepted Answer

You borrow to fund the build, with funds released in stages as work is completed. At the end, 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. Some programs allow lower scores with stronger reserves or a larger down payment.

Question 3

Can I use a construction loan to buy land and build?

Accepted Answer

Yes. Many one-time-close programs cover the land purchase and construction in a single loan. Ask us which lenders allow this.

Question 4

How long does a construction loan last in Napa County?

Accepted Answer

Typical construction terms run 12 months. Napa permitting delays may require a lender offering 18-month build periods.

Question 5

Do I make payments during construction?

Accepted Answer

Usually interest-only payments on funds drawn. Full principal payments start after the loan converts to permanent financing.

Question 6

What's a one-time-close construction loan?

Accepted Answer

You close once, locking your permanent rate upfront. This avoids a second closing after the build, saving time and closing costs.

Construction Loans in American Canyon, CA