Question 1

How does a construction loan work in West Sacramento?

Accepted Answer

The lender releases funds in draws as each build phase is completed. At the end, it converts to a permanent mortgage.

Question 2

What credit score do I need for a construction loan?

Accepted Answer

Most lenders want 680 or higher. Some programs allow lower scores but require more down or charge higher rates. Rates vary by borrower profile and market conditions.

Question 3

Can I be my own general contractor in Yolo County?

Accepted Answer

Some lenders allow owner-builder setups, but most won't. Expect heavy documentation requirements if a lender does approve it.

Question 4

How long does a construction loan last?

Accepted Answer

Typically 12 months, sometimes up to 18. Extensions are possible but not guaranteed — ask your lender upfront.

Question 5

What happens if my build goes over budget?

Accepted Answer

You cover overages out of pocket. Lenders fund the approved amount only. A contingency reserve of 10-15% is strongly advised.

Question 6

Do I make payments during construction?

Accepted Answer

Yes, but only on the amount drawn. You pay interest only during the build phase, not the full loan balance.

Construction Loans in West Sacramento, CA