Question 1

How much can I borrow for a Belmont construction project?

Accepted Answer

Most lenders go up to 80% of the finished appraised value. On a $3M completed home, you'd borrow $2.4M and bring $600K plus closing costs to the table.

Question 2

What happens if construction costs exceed my loan amount?

Accepted Answer

You cover overruns out of pocket. Lenders won't increase your loan mid-project, which is why we recommend budgeting 15% above estimates upfront.

Question 3

Can I live on the property during construction?

Accepted Answer

Not during active construction. Lenders and insurance won't allow occupancy until you have a certificate of occupancy and convert to permanent financing.

Question 4

Do construction loans have higher rates than regular mortgages?

Accepted Answer

The construction phase runs 0.5-1% higher. Once you convert to permanent financing, rates match standard mortgage products for your loan amount and credit profile.

Question 5

What if my builder goes out of business mid-project?

Accepted Answer

Your lender holds funds in escrow and can require a new licensed contractor to complete the work. This delays the project but protects your equity position.

Construction Loans in Belmont: Build on Premium San Mateo County Land