Question 1

How long does construction loan approval take in Pismo Beach?

Accepted Answer

Plan for 45-60 days from application to closing. We need builder contracts, final plans, and permits approved or in process before starting underwriting.

Question 2

Can I act as my own general contractor?

Accepted Answer

Most lenders require a licensed general contractor with coastal building experience. Owner-builder loans exist but need significant construction background and higher down payments.

Question 3

What happens if construction costs exceed my loan amount?

Accepted Answer

You cover overruns out of pocket before the lender releases final draws. Budget contingencies upfront—most Pismo Beach projects hit at least one unexpected cost.

Question 4

Do I make mortgage payments during construction?

Accepted Answer

You pay interest-only on funds drawn during construction. Full principal and interest payments start when the build completes and converts to permanent financing.

Question 5

Can I use a construction loan for major renovations?

Accepted Answer

Yes, renovation construction loans work for gut rehabs or significant additions. Your project needs detailed plans and a licensed contractor with renovation experience.

Construction Loans in Pismo Beach: Build Your Coastal Home Right