Question 1

How does a construction loan work in Rio Vista?

Accepted Answer

You borrow in stages as your home is built. Funds release in draws tied to completed milestones, then the loan converts to a permanent mortgage.

Question 2

Do I need to own land before applying?

Accepted Answer

Not always. Some programs let you bundle land purchase and construction into one loan. Others require you to own the lot first.

Question 3

What credit score do I need for a construction loan?

Accepted Answer

Most lenders want 680 or higher. Some programs allow lower scores with stronger compensating factors like larger down payments.

Question 4

Can I be my own general contractor in California?

Accepted Answer

A few lenders allow owner-builder arrangements, but most require a licensed GC. Owner-builder programs carry stricter approval criteria.

Question 5

What happens if my build goes over budget?

Accepted Answer

Cost overruns come out of pocket — the lender won't increase your loan mid-project. Always budget a 10-15% contingency before you start.

Question 6

Are construction loan rates higher than regular mortgage rates?

Accepted Answer

Yes. Construction loans carry more lender risk, so rates run higher during the build phase. Rates vary by borrower profile and market conditions.

Construction Loans in Rio Vista, CA