Question 1

How do construction loan draws work in Sunnyvale?

Accepted Answer

Funds release in stages tied to build milestones. An inspector verifies each phase before the lender releases the next draw.

Question 2

Can I be my own general contractor in Sunnyvale?

Accepted Answer

A few lenders allow owner-builder arrangements. Most don't — and those that do require significant construction experience on your record.

Question 3

What does the loan convert to at completion?

Accepted Answer

Most programs convert to a 30-year fixed or ARM at project completion. You lock the permanent rate at that conversion point.

Question 4

Do I pay interest during construction?

Accepted Answer

Yes — interest-only payments on the drawn balance during the build phase. Full principal and interest begin after conversion.

Question 5

How long does construction loan approval take?

Accepted Answer

Expect 30-60 days. Complete plans and a signed builder contract upfront will prevent most delays in the approval process.

Question 6

What credit score do I need for a construction loan?

Accepted Answer

Most lenders require 680 minimum. Aiming for 720 gives you access to better programs and stronger lender interest. Rates vary by borrower profile and market conditions.

Construction Loans in Sunnyvale, CA