Question 1

Can I use a construction loan on raw land in Siskiyou County?

Accepted Answer

Yes, but lenders want a clear plan — permits, licensed builder, and cost breakdown. Raw land with no approvals is a harder sell.

Question 2

What is a one-time close construction loan?

Accepted Answer

One loan covers both the build and the permanent mortgage. You close once, which cuts fees and rate risk at conversion.

Question 3

How do construction loan draws work?

Accepted Answer

Funds release in stages tied to build milestones. Lenders send an inspector before each draw to confirm progress.

Question 4

Do I pay interest during the construction phase?

Accepted Answer

Yes, but only on funds drawn so far. Payments start small and grow as more money is pulled from the loan.

Question 5

Can I be my own general contractor in Montague?

Accepted Answer

Some lenders allow owner-builders, but most require a licensed GC. It's a shorter list of programs and stricter underwriting.

Question 6

How long does a construction loan last in California?

Accepted Answer

Build phases typically run 6-12 months. Rural projects in Siskiyou often need the full 12 due to permit and contractor delays.

Construction Loans in Montague, CA — Build What Doesn't Exist Yet