Question 1

How does a construction loan work in Huntington Beach?

Accepted Answer

The lender funds your build in stages called draws. Once construction is complete, the loan converts to a permanent mortgage.

Question 2

What credit score do I need for a construction loan?

Accepted Answer

Most lenders require 680 or higher. Some programs allow lower scores with stronger compensating factors.

Question 3

Can I build an ADU with a construction loan?

Accepted Answer

Yes, ADU projects qualify with many lenders. You'll still need permits, a licensed contractor, and a detailed budget.

Question 4

Do I pay the full loan amount during construction?

Accepted Answer

No. You draw funds as needed and pay interest only on what's been drawn. Full payments start after conversion.

Question 5

How long does a construction loan term last?

Accepted Answer

Most construction phases run 12 months. Extensions are possible but usually come with added fees.

Question 6

What is a one-time close construction loan?

Accepted Answer

It combines the construction phase and permanent mortgage into one loan. You qualify once and avoid a second closing.

Construction Loans in Huntington Beach, CA