Question 1

Can I use a construction loan to build on land I already own in Santee?

Accepted Answer

Yes. Owned land can count toward your equity requirement. Some lenders will fold the land value into the total loan.

Question 2

What credit score do I need for a construction loan in San Diego County?

Accepted Answer

Most lenders require 680 or higher. Stronger credit gets better terms on the permanent conversion.

Question 3

How does a one-time-close construction loan work?

Accepted Answer

You close once and the loan automatically converts to a permanent mortgage when the build is complete. It saves a second round of closing costs.

Question 4

How long does a construction loan term typically last?

Accepted Answer

Most construction phases run 12 months. Some lenders allow extensions if the project runs long.

Question 5

Do I make payments during the construction phase?

Accepted Answer

Yes — typically interest-only on funds drawn. Full payments begin after conversion to the permanent loan.

Question 6

What happens if construction costs go over budget?

Accepted Answer

Cost overruns come out of your pocket. Build a contingency of at least 10–15% into your project budget.

Construction Loans in Santee, CA — Build It Right