Question 1

What credit score do I need for a construction loan in Cotati?

Accepted Answer

Most lenders require 680 or higher. Better scores get better rates — rates vary by borrower profile and market conditions.

Question 2

Can I use a construction loan to build on land I already own in Sonoma County?

Accepted Answer

Yes. Owned land can often count toward your equity requirement. It reduces how much cash you need at closing.

Question 3

What is a one-time-close construction loan?

Accepted Answer

It combines the construction phase and permanent mortgage into one loan. You close once and avoid a second set of closing costs.

Question 4

How do draw schedules work during construction?

Accepted Answer

Funds are released in stages as work is completed. An inspector typically verifies progress before each draw is approved.

Question 5

Do I make payments while my home is being built?

Accepted Answer

Yes, but usually interest-only on the funds drawn so far. Full mortgage payments start after construction is complete.

Question 6

Does Sonoma County fire risk affect my construction loan?

Accepted Answer

It can. Some lenders require fire insurance commitments before funding. Discuss this upfront so it doesn't delay your closing.

Construction Loans in Cotati, CA — Build What You Can't Buy