Question 1

How does a construction loan work in Colfax?

Accepted Answer

Funds release in stages called draws as construction milestones are met. You pay interest only during the build, then convert to a permanent mortgage.

Question 2

Can I be my own general contractor?

Accepted Answer

Most lenders say no. Owner-builder programs exist but are rare and require significant experience. Expect fewer options and stricter terms.

Question 3

What credit score do I need?

Accepted Answer

Plan for 680 minimum. Scores below that narrow your options significantly and push rates higher.

Question 4

How long does a construction loan last?

Accepted Answer

Typically 12-18 months. Placer County permitting timelines make 18-month terms smarter for most Colfax builds.

Question 5

Do I need to own the land first?

Accepted Answer

Not always. Many construction loans include land acquisition in the total loan amount. Existing land equity can reduce your down payment requirement.

Question 6

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

Accepted Answer

One loan covers both the build and permanent financing. You close once and avoid a second round of closing costs at completion.

Construction Loans in Colfax, CA — Build on Your Terms