Question 1

How does a construction loan work in Cloverdale?

Accepted Answer

Funds release in draws as construction hits milestones. At completion, the loan converts to a standard mortgage.

Question 2

What credit score do I need for a construction loan?

Accepted Answer

Most lenders require 680 minimum. Better scores get better rates. Rates vary by borrower profile and market conditions.

Question 3

Can I owner-build in Cloverdale with this loan?

Accepted Answer

Most lenders require a licensed general contractor. Owner-builder programs exist but are rare and harder to qualify for.

Question 4

How long does a construction loan term last?

Accepted Answer

Typically 12 months. Sonoma County permitting delays sometimes require extensions — confirm that option before closing.

Question 5

Does wildfire risk affect my construction loan approval?

Accepted Answer

Yes. Lenders require proof of hazard insurance before funding. In Cloverdale, wildfire coverage can be costly and hard to place.

Question 6

What happens if construction costs go over budget?

Accepted Answer

You cover overruns out of pocket. Lenders don't add funds mid-build. Pad your budget before you close.

Construction Loans in Cloverdale, CA — Build It Right