Question 1

How do construction loan draws work in Sonora?

Accepted Answer

Lenders release funds in stages as work completes — foundation, framing, rough mechanicals, finish. An inspector verifies each phase before releasing the next draw.

Question 2

Can I act as my own general contractor?

Accepted Answer

Some lenders allow owner-builder arrangements, but most require licensed contractors. Owner-builder loans typically need 25-30% down instead of 20%.

Question 3

What happens if construction costs exceed my loan amount?

Accepted Answer

You pay overruns out of pocket before lenders release final draws. This is why accurate budgets and contingency funds matter from day one.

Question 4

Do I make payments during construction?

Accepted Answer

Most construction loans charge interest-only payments on drawn funds during the build. Full principal and interest payments start after conversion to permanent financing.

Question 5

How long does construction financing approval take?

Accepted Answer

Expect 30-45 days once you submit complete plans, builder contracts, and cost breakdowns. Incomplete documentation adds weeks to the timeline.

Construction Loans in Sonora — Build Your Dream Property in Tuolumne County