Question 1

How does a construction loan work in California?

Accepted Answer

You borrow in stages as the build progresses. At completion, the loan converts to a standard mortgage.

Question 2

Can I build in San Juan Bautista with a construction loan?

Accepted Answer

Yes, but San Benito County's rural status limits lender options. Working with a broker gives you better access to lenders who lend there.

Question 3

What credit score do I need for a construction loan?

Accepted Answer

Most lenders require 680 or higher. Below that, your options shrink and your rate increases significantly.

Question 4

What is a one-time-close construction loan?

Accepted Answer

One loan covers both the build and the permanent mortgage. You close once and avoid a second round of fees.

Question 5

Do I need a licensed contractor to get approved?

Accepted Answer

Yes. Lenders require a licensed, vetted builder. Owner-builder situations are rare and harder to finance.

Question 6

How long does a construction loan last?

Accepted Answer

Typically 12 months. Extensions are possible but lenders charge for them — stay on schedule.

Construction Loans in San Juan Bautista, CA