Question 1

How do construction loan draws work in Vista?

Accepted Answer

The lender releases funds in stages as construction milestones are hit. An inspector verifies each phase before money is released.

Question 2

Can I be my own general contractor in Vista?

Accepted Answer

Most lenders say no. They require a licensed, insured GC with a proven track record. Owner-builder programs exist but are rare and harder to qualify for.

Question 3

What does the appraisal cover on a construction loan?

Accepted Answer

The appraiser estimates the home's value after it's fully built. That number determines your max loan amount — not the cost of construction.

Question 4

How long does construction loan approval take?

Accepted Answer

Expect 30-60 days from application to close. Approved plans and a contractor bid need to be ready before underwriting can start.

Question 5

Do I pay the full loan payment during construction?

Accepted Answer

No. You pay interest only on what's been drawn. Full principal and interest payments begin after the loan converts to permanent financing.

Question 6

What happens if my build goes over budget in Vista?

Accepted Answer

The lender won't cover overruns beyond your approved amount. That's why contingency reserves are critical — you fund the gap out of pocket.

Construction Loans in Vista, CA — Build It Right