Question 1

How long does construction loan approval take in Paso Robles?

Accepted Answer

Expect 30-60 days for approval. You need complete plans, contractor agreements, and permit applications ready. Lenders review all construction details before committing funds.

Question 2

Can I act as my own general contractor to save money?

Accepted Answer

Some lenders allow owner-builders with proven construction experience. Most require licensed contractors to protect their investment and ensure proper completion.

Question 3

What happens if construction costs exceed my loan amount?

Accepted Answer

You'll need to cover overruns from your own funds. This is why contingency budgets matter. Lenders won't increase the loan mid-construction without significant equity cushion.

Question 4

Do I need to own the land before applying for a construction loan?

Accepted Answer

Most lenders require you to own the building site or close simultaneously. The land provides collateral and lenders want clear title before funding construction.

Question 5

How do draw schedules work during construction?

Accepted Answer

Funds release at completion milestones like foundation, framing, and final inspection. An inspector verifies work before each draw, protecting both you and the lender.

Construction Loans in Paso Robles: Build Your Custom Home in Wine Country