Question 1

What's the minimum down payment for a construction loan in Roseville?

Accepted Answer

Most lenders require 20-25% down for construction loans. This covers land cost plus initial construction reserves.

Question 2

How do construction loan draws work in Placer County?

Accepted Answer

Lenders release funds in 4-6 draws tied to milestones like foundation, framing, drywall. An inspector verifies each stage before releasing payment.

Question 3

Can I act as my own general contractor on a construction loan?

Accepted Answer

Most lenders require a licensed general contractor. Owner-builder loans exist but demand higher down payments and more documentation.

Question 4

What happens if construction costs exceed the loan amount?

Accepted Answer

You cover overruns out of pocket or secure additional financing. Lenders won't increase loan amounts mid-project without significant equity cushion.

Question 5

Do construction loans include the land purchase?

Accepted Answer

Yes, if you don't own the land yet. The loan covers land acquisition plus build costs in a single package.

Question 6

How long does construction loan approval take in Roseville?

Accepted Answer

Expect 30-45 days from application to closing. Detailed plans and contractor documentation slow the process compared to standard purchase loans.

Construction Loans in Roseville: Build Your Custom Home in Placer County