Question 1

How long does a Half Moon Bay construction loan take to close?

Accepted Answer

Expect 45-60 days from application to closing. Coastal projects need extra appraisal time and lender review of permits and environmental clearances.

Question 2

Can I act as my own general contractor?

Accepted Answer

Some lenders allow owner-builder projects if you have prior construction experience and a California contractor's license. Most require a licensed GC with coastal building history.

Question 3

What happens if construction costs exceed my loan amount?

Accepted Answer

You'll need to bring cash to cover the overage before the lender releases final draws. This is why accurate budgeting and contingency reserves matter upfront.

Question 4

Do construction loans require an appraisal?

Accepted Answer

Yes. Lenders order an appraisal of the completed project value based on your plans and specifications. This determines your maximum loan amount.

Question 5

Can I lock my construction loan rate now?

Accepted Answer

Most construction loans float during the build and lock when converting to permanent financing. Some lenders offer upfront locks for an extra fee.

Construction Loans in Half Moon Bay — Build on the Coast