Question 1

How long does construction loan approval take in Daly City?

Accepted Answer

Expect 45-60 days for approval as lenders review construction plans, contractor credentials, and project feasibility. Complex projects or first-time builders may take longer.

Question 2

What happens if my construction project runs over budget?

Accepted Answer

Most lenders allow modest overruns if you have reserves and the project remains viable. Significant overages may require additional equity or renegotiation of loan terms.

Question 3

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

Accepted Answer

Some lenders permit owner-builders, but most require licensed general contractors. Those allowing owner-builders typically require construction experience and impose stricter oversight.

Question 4

Do I make payments during the construction phase?

Accepted Answer

Most construction loans require interest-only payments on funds drawn during building. Full principal and interest payments begin when the loan converts to permanent financing.

Question 5

What if construction takes longer than the loan allows?

Accepted Answer

Most construction loans provide 12-18 month building periods. Extensions are possible but may involve fees and rate adjustments. Plan conservatively to avoid this situation.

Construction Loans in Daly City: Build Your Vision on the Peninsula