Question 1

Can I buy land and build with one loan?

Accepted Answer

Yes. A construction-to-permanent loan can wrap land and build costs into one product. Not all lenders offer this, but we have access to those that do.

Question 2

How do construction loan draws work?

Accepted Answer

Funds are released in stages as your builder hits set milestones. An inspector verifies each stage before the lender releases the next draw.

Question 3

What if my builder goes over budget?

Accepted Answer

Overruns are your responsibility unless you built a contingency reserve into the loan. Most lenders require a 10% contingency built into the project budget.

Question 4

Will wildfire risk affect my loan in Chester?

Accepted Answer

It affects your permanent loan conversion, not the construction phase. Lock in a homeowners insurance commitment before you close on the construction loan.

Question 5

How long does a construction loan last?

Accepted Answer

Typically 12 months. Some lenders extend to 18. In Plumas County, plan for permitting delays and build that buffer into your timeline.

Question 6

Do I make payments during construction?

Accepted Answer

You pay interest only on drawn funds during the build. Full principal and interest payments begin after conversion to the permanent mortgage.

Construction Loans in Chester, CA — Build in Plumas County

Construction Loans in Chester, CA — Build in Plumas County