Question 1

How does a construction loan work in Santa Clara?

Accepted Answer

Funds are released in draws as each build phase completes. At project completion, the loan converts to a permanent mortgage.

Question 2

Can I use a construction loan to buy the land too?

Accepted Answer

Yes, many programs allow a combined lot and construction loan. Santa Clara land costs are high, so expect a larger total loan amount.

Question 3

What credit score do I need for a construction loan?

Accepted Answer

Most lenders require 680 or higher. Stronger scores get better rates. Rates vary by borrower profile and market conditions.

Question 4

Do I need a licensed contractor to qualify?

Accepted Answer

Yes. Lenders require a licensed, insured contractor with an approved project timeline before they'll fund.

Question 5

What is a one-time close construction loan?

Accepted Answer

It's one application and one closing covering both construction and permanent financing. You avoid a second approval after the build.

Question 6

How long does the construction loan period last?

Accepted Answer

Typically 12 months. Santa Clara permitting delays can push timelines, so ask about extension options upfront.

Construction Loans in Santa Clara, CA