Question 1

What down payment do I need for a Nevada City construction loan?

Accepted Answer

Most lenders require 20% down. Properties in high fire zones or on challenging lots may need 25-30% down to offset lender risk.

Question 2

How long does construction loan approval take in Nevada County?

Accepted Answer

Expect 30-45 days from application to approval. Lenders need time to vet your builder, review plans, and order the land appraisal.

Question 3

Can I use a construction loan for a major remodel in Nevada City?

Accepted Answer

Yes, renovation construction loans fund significant remodels. You need detailed contractor bids and plans showing the work scope and completed value.

Question 4

Do construction lenders finance properties in Nevada City fire zones?

Accepted Answer

Some do with proper mitigation plans. You'll need defensible space clearance, fire-resistant materials, and often higher insurance coverage.

Question 5

What happens if construction takes longer than expected?

Accepted Answer

Most loans include extension options for 3-6 months. You'll pay an extension fee and possibly a higher interest rate during the extra time.

Question 6

Can I act as my own general contractor to save money?

Accepted Answer

Few lenders allow owner-builders unless you have prior construction experience. They need licensed contractors with insurance and completed projects.

Construction Loans in Nevada City — Build in the Sierra Foothills