Question 1

How does a construction loan work in Mountain View?

Accepted Answer

Funds release in stages called draws as construction milestones are met. Most loans convert to a permanent mortgage when the build is complete.

Question 2

Do I pay a mortgage during construction?

Accepted Answer

You pay interest only on funds drawn during construction. Full principal and interest payments start after the loan converts to permanent.

Question 3

How long is a typical construction loan term?

Accepted Answer

Most run 12 to 18 months for the build phase. Mountain View permitting timelines can push that — plan for extensions.

Question 4

Can I use a construction loan for a teardown rebuild?

Accepted Answer

Yes, but lender approval depends on the land value and project scope. Not every lender will do teardown-rebuilds in high-cost zip codes.

Question 5

What credit score do I need for a construction loan?

Accepted Answer

Most lenders start at 680. Larger projects in Santa Clara County often require 700 or higher depending on loan size.

Question 6

Does my builder need lender approval?

Accepted Answer

Yes. Your builder must be licensed, insured, and approved by the lender before funds are released. Vet your contractor early.

Construction Loans in Mountain View, CA