Question 1

How does a construction loan work in Los Altos Hills?

Accepted Answer

You draw funds in stages as building progresses. Lenders send inspectors to verify each phase before releasing the next draw.

Question 2

Can I use a construction loan to buy land too?

Accepted Answer

Yes. Many construction loans fold in land acquisition. Lenders size the loan against the finished home's projected value.

Question 3

What credit score do I need?

Accepted Answer

Most lenders start at 680. Loans above $2M often require 720 or higher. Reserves matter just as much as your score here.

Question 4

How long do construction loans last?

Accepted Answer

Typically 12-18 months. Los Altos Hills permit timelines mean you should budget for the longer end of that range.

Question 5

Do I pay interest during construction?

Accepted Answer

Yes — but only on funds drawn, not the full loan amount. Payments stay lower in the early build stages.

Question 6

What is a construction-to-permanent loan?

Accepted Answer

It's one loan that covers the build, then converts to a regular mortgage at completion. You only close once and pay one set of closing costs.

Construction Loans in Los Altos Hills, CA