Question 1

How do construction loan draws work in Visalia?

Accepted Answer

Lenders inspect work at each milestone and release funds directly to your contractor. Foundation, framing, and completion typically trigger draws, with exact schedules varying by lender and project complexity.

Question 2

Can I act as my own general contractor?

Accepted Answer

Some lenders allow owner-builder construction loans, but most require a licensed contractor. Owner-builder programs need extra documentation proving construction experience and come with higher rates.

Question 3

What happens if my build goes over budget?

Accepted Answer

You pay overages out of pocket. Lenders base your loan on the original appraisal and won't increase mid-project without a new appraisal showing added value, which rarely covers cost overruns.

Question 4

Do I pay interest during construction?

Accepted Answer

You pay interest only on drawn funds during the build phase. Your payment increases as the lender releases more money, then converts to principal and interest when construction completes.

Question 5

How long does construction loan approval take?

Accepted Answer

Expect 30-45 days from application to closing. Lenders need time to review plans, verify contractor licenses, and order appraisals on your proposed finished home rather than existing property.

Construction Loans in Visalia: Build Your Custom Home in Tulare County