Question 1

How much down payment do construction loans require in Portola Valley?

Accepted Answer

Most lenders require 20% of total project cost, including land and construction. Some offer 10% down with stronger credit and income, though rates increase.

Question 2

Can I act as my own general contractor?

Accepted Answer

Few lenders allow owner-builder structures unless you have licensed contractor credentials. Most require a licensed GC with builder's risk insurance and payment bonds.

Question 3

What happens if construction runs over budget?

Accepted Answer

You fund overages from contingency reserves already in the loan, or bring cash to cover additional costs. Lenders don't increase loan amounts mid-construction without full reapproval.

Question 4

How long does construction loan approval take?

Accepted Answer

Plan 45-60 days from application to loan approval. Then add time for design review and permit approvals before your first draw funds.

Question 5

Do construction loans require appraisals?

Accepted Answer

Yes, lenders order appraisals based on plans and specifications showing the completed value. The appraisal determines maximum loan amount based on finished home value.

Construction Loans in Portola Valley: Build Your Custom Estate