Question 1

How long does construction loan approval take in Napa?

Accepted Answer

Expect 45-60 days from application to funding. The lender needs time to review plans, vet your builder, and order an appraisal on the completed value.

Question 2

Can I act as my own general contractor?

Accepted Answer

Some lenders allow owner-builders if you have documented construction experience. Most require a licensed general contractor with a proven track record.

Question 3

What happens if construction costs exceed my loan amount?

Accepted Answer

You cover overruns out of pocket before the lender releases final draws. This is why a 10% cash reserve beyond your down payment matters.

Question 4

Do I make payments during construction?

Accepted Answer

You typically pay interest only on funds drawn during the build phase. Full principal and interest payments start when the loan converts to permanent financing.

Question 5

Can I finance a major renovation with a construction loan?

Accepted Answer

Yes, renovation construction loans work for gut rehabs and major additions. The property needs to be livable or you'll need alternate housing during construction.

Question 6

What rate should I expect on a Napa construction loan?

Accepted Answer

Rates vary by borrower profile and market conditions. As of February 2026, expect 0.5-1% above standard purchase loan rates for construction products.

Construction Loans in Napa: Building Custom Homes in Wine Country