Question 1

Can I act as my own general contractor in El Cajon?

Accepted Answer

Most lenders won't allow it. They require a licensed third-party GC. A few portfolio lenders make exceptions for experienced owner-builders.

Question 2

How do construction loan draws work?

Accepted Answer

The lender releases funds in stages tied to completed work. An inspector verifies each phase before the next draw is released.

Question 3

What happens if the build goes over budget?

Accepted Answer

You cover the overage out of pocket. Lenders don't increase the loan mid-build, so accurate cost estimates upfront are critical.

Question 4

Can I buy the lot and build with one loan?

Accepted Answer

Yes. Some construction-to-permanent loans include lot acquisition. The lot often needs to be purchased before or rolled into the construction loan at closing.

Question 5

Do construction loans have fixed or variable rates?

Accepted Answer

The construction phase is typically variable. The permanent phase can convert to a fixed rate. Terms vary by lender.

Question 6

How long does construction loan approval take?

Accepted Answer

Expect 30-60 days. Plan review and builder credentialing add time vs. a standard purchase loan.

Construction Loans in El Cajon, CA