Question 1

Can I act as my own general contractor to save money?

Accepted Answer

Most lenders prohibit owner-builders on loans over $1M. They require licensed contractors with track records and insurance. DIY projects don't qualify for institutional financing in Woodside's price range.

Question 2

How do draw inspections work during construction?

Accepted Answer

Lenders send third-party inspectors to verify work completed before releasing funds. Expect 6-10 inspections over an 18-month build. Each draw takes 7-10 days from request to funding.

Question 3

What happens if construction costs exceed the original budget?

Accepted Answer

You pay overruns out of pocket or tap your contingency reserve. Lenders don't increase loan amounts mid-construction. Budget padding is critical for custom Woodside projects.

Question 4

Do I need separate insurance during the construction phase?

Accepted Answer

Yes. Builder's risk insurance is mandatory and typically costs 2-4% of construction budget. Your lender requires proof before funding the first draw.

Question 5

Can I live on-site during construction in a temporary structure?

Accepted Answer

Woodside prohibits most temporary dwellings during construction. Check town code before planning to occupy during your build. Lenders also have occupancy restrictions during the construction phase.

Construction Loans in Woodside: Build Your Custom Estate with Strategic Financing