Question 1

Can I act as my own general contractor in Petaluma?

Accepted Answer

Most lenders require a licensed GC. Owner-builder programs exist but are rare and come with stricter underwriting.

Question 2

How long does a construction loan term last?

Accepted Answer

Most terms run 12–18 months. Extensions are possible but typically cost a fee and require lender approval.

Question 3

Do I make payments during construction?

Accepted Answer

Yes — usually interest-only payments on the amount drawn. You're not paying interest on funds not yet released.

Question 4

What happens if the build goes over budget?

Accepted Answer

You cover cost overruns out of pocket. Lenders fund to the approved budget only — that's why a contingency reserve matters.

Question 5

Can I build an ADU with a construction loan in Petaluma?

Accepted Answer

Yes. ADU construction loans are available. Loan structure depends on whether the ADU is attached or a standalone unit.

Question 6

What credit score do I need for a construction loan?

Accepted Answer

Most lenders want 680 or higher. Below that, programs exist but expect larger down payments and tighter terms.

Construction Loans in Petaluma, CA