Question 1

How long does construction loan approval take in Redwood City?

Accepted Answer

Plan 45-60 days from application to closing. San Mateo County permit verification adds two weeks versus standard purchase loans.

Question 2

Can I act as my own general contractor?

Accepted Answer

Most lenders require licensed GCs with liability insurance. A few portfolio lenders allow owner-builders with construction experience and 30% down.

Question 3

What happens if construction costs exceed the original budget?

Accepted Answer

You cover overruns out of pocket. Lenders won't increase the loan mid-project unless the appraisal supports higher finished value and you re-qualify.

Question 4

Do construction loans require appraisals twice?

Accepted Answer

Yes. You need one appraisal on projected completed value at approval, then a final appraisal before converting to permanent financing.

Question 5

How do draw inspections work during construction?

Accepted Answer

Lenders send inspectors at each milestone—foundation, framing, mechanicals, completion. Funds release only after verified progress matches the schedule.

Question 6

Can I lock my permanent loan rate during construction?

Accepted Answer

Construction-to-permanent loans lock your end rate at closing. Expect to pay 0.25-0.50% premium for that protection versus floating rate options.

Construction Loans in Redwood City Built for Your Ground-Up Project