Question 1

How long does construction loan approval take in Hillsborough?

Accepted Answer

Plan for 45-60 days once you have final plans and contractor bids. Lenders scrutinize timelines closely given local permit complexity.

Question 2

Can I act as my own general contractor?

Accepted Answer

Most lenders require licensed, bonded contractors for projects this size. Owner-builder setups get rejected unless you have documented construction experience.

Question 3

What happens if my project runs over budget?

Accepted Answer

You fund overruns from reserves or bring new cash. Lenders won't increase the loan mid-project without full re-underwriting.

Question 4

Do construction loans convert to permanent mortgages automatically?

Accepted Answer

Most are construction-to-perm loans that convert at completion. You get one closing, one set of fees, avoiding the hassle of refinancing into permanent financing.

Question 5

How much reserves do I need for a $4M build?

Accepted Answer

Expect lenders to want $500K-700K in liquid reserves beyond your down payment. They want certainty you can finish the project through delays.

Construction Loans in Hillsborough — Build Your Custom Estate