Question 1

Can I buy land and build with one loan in Plumas County?

Accepted Answer

Yes. A construction-to-perm loan can bundle land purchase and build costs. It closes once and converts to a mortgage when the home is done.

Question 2

How does the draw process work on a construction loan?

Accepted Answer

Funds release in stages tied to build milestones — foundation, framing, finish work. An inspector verifies each stage before the lender releases the next draw.

Question 3

Do construction loans have higher rates than regular mortgages?

Accepted Answer

Yes. Construction phase rates run higher than permanent mortgage rates. Rates vary by borrower profile and market conditions.

Question 4

What happens if my build goes over budget?

Accepted Answer

The loan amount is fixed. Cost overruns are your responsibility. Most advisors recommend a 10-15% contingency buffer before you break ground.

Question 5

Are there extra steps for building in a fire hazard zone in Portola?

Accepted Answer

Yes. Fire zone properties require specific insurance before closing. Some lenders also apply stricter underwriting to properties in high-risk areas.

Question 6

How long does a construction loan term typically last?

Accepted Answer

Construction phases usually run 12 months. Some lenders offer up to 18 months for complex builds — important given Portola's mountain build schedule.

Construction Loans in Portola, CA — Build It Right