Question 1

How long can I lock a construction loan rate in San Bruno?

Accepted Answer

Most lenders offer 6-12 month locks for construction loans. Longer locks cost extra but make sense with San Bruno's permit delays.

Question 2

What happens if my build runs over budget?

Accepted Answer

Lenders won't automatically fund overruns. You need cash reserves or re-approval, which can take weeks and stall construction progress.

Question 3

Can I act as my own general contractor?

Accepted Answer

Some lenders allow owner-builders with construction experience. Expect higher rates and larger down payments without a licensed GC.

Question 4

Do construction loans require appraisals?

Accepted Answer

Yes, lenders order "subject to completion" appraisals based on your plans. The appraised value determines your maximum loan amount.

Question 5

When do construction loan payments start?

Accepted Answer

Interest-only payments begin after your first draw. You pay interest on the outstanding balance until converting to permanent financing.

Construction Loans in San Bruno: Build Your Vision in San Mateo County