Question 1

How does a construction loan work in Sonoma?

Accepted Answer

You draw funds in stages as building milestones are met. At completion, the loan converts to a standard mortgage.

Question 2

Can I act as my own general contractor?

Accepted Answer

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

Question 3

What credit score do I need?

Accepted Answer

Most programs start at 680. Below that, options shrink fast and rates go up. Rates vary by borrower profile and market conditions.

Question 4

Do fire zone rules affect my construction loan?

Accepted Answer

Yes. Lenders require proof of insurable coverage before funding. Sonoma County fire zones complicate this step.

Question 5

How long does a construction loan last?

Accepted Answer

Typically 12 months for the build phase. Some lenders allow extensions if the project runs over schedule.

Question 6

What's the difference between one-time-close and two-close loans?

Accepted Answer

One-time-close locks your rate and rolls into permanent financing in one closing. Two-close means two separate loan transactions.

Construction Loans in Sonoma, CA