Question 1

How long do construction loans last in Waterford?

Accepted Answer

Typical construction period is 12 months with option to extend 6 months if needed. Extensions cost fees and require lender approval before original term expires.

Question 2

Can I act as my own general contractor?

Accepted Answer

Some lenders allow owner-builder construction loans if you prove experience and carry proper insurance. Most require licensed general contractor with established track record.

Question 3

What happens if construction costs exceed the loan amount?

Accepted Answer

You pay overruns out of pocket—lenders won't increase approved amounts mid-build. Budget conservatively and maintain 15% cash reserve for unexpected costs.

Question 4

Do I make payments during construction?

Accepted Answer

Most construction loans are interest-only on drawn funds during building. Full principal and interest payments start when loan converts to permanent mortgage at completion.

Question 5

How do construction loan draws work?

Accepted Answer

Lender inspects completed work stages and releases funds directly to builder. Typical draw schedule: foundation, framing, dried-in, mechanicals, completion.

Construction Loans in Waterford: Build Your New Home With Expert Financing