Question 1

What's the difference between construction loans and purchase mortgages?

Accepted Answer

Construction loans finance the build phase with interest-only payments. Purchase mortgages close on existing homes in 30–45 days. Construction loans convert to permanent financing at completion.

Question 2

How much down payment do I need for a construction loan in St Helena?

Accepted Answer

Most lenders require 20–25% down on construction loans. The down payment is calculated on the total project cost, not just the land value. Your builder's experience and fixed-price contract also matter.

Question 3

Can I get a construction loan above the $1,017,750 conforming limit?

Accepted Answer

Yes. Jumbo construction loans are available for projects above the 2026 conforming limit of $1,017,750. Jumbo construction financing carries a higher rate and tighter underwriting than conforming loans.

Question 4

How long does the construction phase last before I convert to a permanent mortgage?

Accepted Answer

Most construction projects in wine country run 12–24 months. The timeline depends on scope and complexity. Your lender will set a conversion deadline, typically within 24 months of closing.

Question 5

What does my lender need to approve a construction loan?

Accepted Answer

Lenders require a licensed general contractor, fixed-price contract, detailed construction budget, and builder credentials. You'll also need an appraisal at closing and another at completion. Your FICO should be 680 or higher.

Construction Loans in St Helena: Build Your Wine Country Dream