Question 1

How does a construction loan work in Benicia?

Accepted Answer

The lender releases funds in stages as your contractor hits milestones. At completion, the loan converts to a standard mortgage.

Question 2

Do I need a licensed contractor to qualify?

Accepted Answer

Yes. Every lender we work with requires a licensed, insured general contractor. Owner-builder programs exist but are rare and restrictive.

Question 3

Can I lock my mortgage rate before the home is built?

Accepted Answer

Some programs offer rate locks at construction close. Others float until conversion. We'll find the structure that fits your risk tolerance.

Question 4

What credit score do I need for a construction loan?

Accepted Answer

Most lenders want 680 or above. Stronger credit opens better rate options at the conversion stage. Rates vary by borrower profile and market conditions.

Question 5

How long does a construction loan last in Solano County?

Accepted Answer

Most construction phases run 12 months. Extensions are possible but cost money. A realistic build timeline protects your loan terms.

Question 6

What's the down payment on a construction loan?

Accepted Answer

Expect 20-25% down based on the total project cost — land plus build. Some lenders use land equity as part of your down payment.

Construction Loans in Benicia, CA — Build It Right