Question 1

How long does construction loan approval take in Foster City?

Accepted Answer

Expect 45-60 days from application to approval. Add another 3-6 months for city design review and permitting before your first draw.

Question 2

Can I act as my own general contractor?

Accepted Answer

Most lenders require licensed contractors with liability insurance. Owner-builder programs exist but limit your lender options significantly.

Question 3

What happens if construction costs exceed my budget?

Accepted Answer

You'll need to bring cash to cover overruns. Lenders won't increase loan amounts mid-construction without full reapproval and new appraisals.

Question 4

Do I need different insurance during construction?

Accepted Answer

Yes, builder's risk insurance covers the structure during construction. Your permanent homeowners policy doesn't activate until you occupy the finished home.

Question 5

Can I live on the property during construction?

Accepted Answer

Not during teardown and foundation work. Lenders and insurers prohibit occupancy until inspections pass and temporary certificates of occupancy issue.

Construction Loans in Foster City: Build Your Custom Home on the Peninsula