Question 1

How does a construction loan work in Los Gatos?

Accepted Answer

The lender funds your build in stages called draws. Once construction is complete, the loan converts to a permanent mortgage.

Question 2

What credit score do I need for a construction loan?

Accepted Answer

Most lenders require 680 or higher. Jumbo construction programs in Santa Clara County often require 720 or better.

Question 3

Can I be my own general contractor in Los Gatos?

Accepted Answer

Some lenders allow owner-builder loans, but most require a licensed GC. Options narrow significantly without one.

Question 4

How long does a construction loan last?

Accepted Answer

Most run 12 months. Los Gatos permit timelines can eat into that — factor in town review before you apply.

Question 5

Do I pay the full mortgage during construction?

Accepted Answer

No. You pay interest only on drawn funds during the build phase. Full payments begin after the loan converts.

Question 6

What is a one-time close construction loan?

Accepted Answer

You close once, covering both the build and permanent loan. It saves closing costs and locks your rate upfront.

Construction Loans in Los Gatos, CA