Question 1

How do construction loan draws work in Santa Paula?

Accepted Answer

Lenders release funds in stages after inspections verify completed work. Your builder requests draws, an inspector confirms progress, then the bank wires payment.

Question 2

Can I act as my own general contractor to save money?

Accepted Answer

Most lenders require a licensed general contractor for loans over $150K. Owner-builder programs exist but carry higher rates and stricter requirements.

Question 3

What happens if construction costs exceed my budget?

Accepted Answer

You'll need additional equity or personal funds to cover overruns. Lenders rarely increase loan amounts mid-project without significant property value justification.

Question 4

How long does construction loan approval take?

Accepted Answer

Expect 45-60 days from application to funding. Plan reviews, contractor verification, and appraisals take longer than standard purchase loans.

Question 5

Do I make payments during construction?

Accepted Answer

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

Construction Loans in Santa Paula — Build Your Custom Home in Ventura County