Question 1

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

Accepted Answer

Most lenders require a licensed general contractor. Owner-builder loans exist but require construction experience and much larger down payments.

Question 2

What happens if construction costs exceed the loan amount?

Accepted Answer

You pay overages out of pocket. Lenders won't increase the loan mid-project, so budget conservatively and keep reserves.

Question 3

How long do I have to complete construction?

Accepted Answer

Most construction loans allow 12 months. Davis permit delays mean you need 18-month terms—ask before committing.

Question 4

Do I make payments during construction?

Accepted Answer

You pay interest only on drawn funds during the build phase. Full principal and interest payments start when construction finishes.

Question 5

Can I lock a rate before getting permits approved?

Accepted Answer

Rate locks expire before Davis permits clear. Expect to float rates until you're ready to break ground.

Construction Loans in Davis: Finance Your Custom Build or Major Renovation