Question 1

What down payment do I need for a San Carlos construction loan?

Accepted Answer

Lenders require 20-25% of total project cost including land. Owned land equity counts toward this requirement.

Question 2

How long does construction loan approval take?

Accepted Answer

Expect 45-60 days with complete plans and contracts. Missing documents or unproven builders stretch timelines significantly.

Question 3

Can I act as my own general contractor?

Accepted Answer

Most lenders require licensed contractors with track records. Owner-builders face much stricter qualification and higher rates.

Question 4

What happens if construction costs exceed the loan amount?

Accepted Answer

You fund overruns with cash. Lenders don't increase approved amounts mid-project, so budget conservatively upfront.

Question 5

Do construction loans work for major renovations?

Accepted Answer

Yes, renovation construction loans fund gut rehabs and additions. Requirements match new builds: plans, contractor, draw schedule.

Construction Loans in San Carlos: Build Your Peninsula Dream Home