Question 1

How long does construction loan approval take in Hollister?

Accepted Answer

Expect 30-45 days with complete plans and builder contracts. San Benito County permit timelines add another 60-90 days before construction starts.

Question 2

Can I act as my own general contractor?

Accepted Answer

Some lenders allow owner-builder projects with 720+ credit and construction experience. Most require a licensed contractor for approval.

Question 3

What happens if construction costs exceed my budget?

Accepted Answer

You cover overruns out of pocket or halt construction. Lenders fund only the approved budget unless you qualify for additional financing mid-build.

Question 4

Do construction loans require PMI in Hollister?

Accepted Answer

Yes, if you put down less than 20%. PMI continues when your loan converts to permanent financing until you reach 20% equity.

Question 5

Can I include land purchase in my construction loan?

Accepted Answer

Yes, but you need 20-25% down on the combined land and build costs. Some lenders require you to own land free and clear first.

Construction Loans in Hollister: Ground-Up Financing for San Benito County Builds