Questions people ask

A mortgage buys a house that already exists. A construction loan pays for one being built, which is a different problem, so it works differently. The money is released in stages as the work gets done rather than handed over in one lump at the start. Those stages are called draws, and they are paid out to the builder as each part of the build is finished and inspected.

During construction most borrowers pay interest only, and only on the money actually drawn so far. So the payments start small and grow as the house does, rather than starting at full size on day one.

Usually, yes, and this surprises a lot of people who assume the whole balance comes due the day the house is finished.

Most construction loans written for someone building a home to live in are construction-to-permanent loans, also called single-close or one-time-close. There is one application and one closing at the beginning, and when the build is complete the loan converts into an ordinary long-term mortgage, with regular principal and interest payments over the usual 15 or 30 years. Nothing is refinanced and there is no second closing to pay for.

The other arrangement is a two-close: the construction loan is separate, and at the end you take out a mortgage to pay it off. That means a second application, a second approval, and a second set of closing costs.

Which one you have depends on the lender and the specific loan, so it is worth asking before anything is signed. It is one of the questions we will walk through when you call.

No, and that assumption is what keeps a lot of good projects sitting still for years. Construction financing exists so the conversation can start with what you want to build rather than with what is currently in the bank. Ask about it when you call and we will explain how it works for your project, with no obligation either way.

Often yes, but the lot has to be checked first, and that check is worth doing before you spend anything on house plans.

What decides it: whether the parcel is a legal lot zoned for a dwelling, whether it has legal access, whether water and power can reach it or whether it needs a well and solar instead, and whether the soil will take a septic system. Those four answers move the cost of a build far more than the design of the house does.

Building on a vacant lot goes through it properly.

It depends almost entirely on distance and on what is under the ground. A lot on a street that already has utilities in it is a short connection. A lot a quarter mile past the last pole is a different project, and sometimes a well and a solar system make more sense than a long service run.

Rock, caliche and the depth you have to go to find water all move the number, which is why the national cost-guide sites are close to useless here. The only honest way to price it is to look at your specific parcel, and looking costs nothing.

Start with the parcel number. That is enough to begin checking zoning, access and what the jurisdiction will require. You do not need plans, a builder under contract, or a decision about what to build in order to find out whether the lot can be built on at all.

The owner is on the job himself. That is the whole point of how this is set up.

The trades are kept in house rather than bid out job to job, so the same people who dig your utilities pour your foundation and frame your walls. Nobody is inheriting a stranger's mistakes, and when you want to know how it is going there is one person to ask rather than a message left with an office.

He is also a certified home inspector, so the owner walking your job is checking it the way an inspector will check it later.

Yes. Permits are part of the job, handled with whichever city or county has jurisdiction over your parcel. Around here that is usually Kern County, Los Angeles County, San Bernardino County, or one of the incorporated cities inside them.

Roughly a hundred miles in every direction. That covers the Antelope Valley, the Victor Valley, the Kern River Valley, and out toward Bakersfield, Barstow and Santa Clarita. If your lot is inside that circle, it is a drive worth making.

ADU stands for accessory dwelling unit. It is a second, self-contained home on the same lot as a house that is already there. California defines it as a dwelling with complete independent living facilities, which means permanent provisions for living, sleeping, eating, cooking and sanitation. You may know it as a granny flat, an in-law unit, a casita, a backyard cottage or a second unit.

The kitchen is what makes it one. A guest room with its own bathroom is an addition to your house. Add permanent cooking provisions and it becomes a dwelling in its own right. It can be detached out in the yard, attached to the house, or a converted garage. A junior ADU is the smaller category: no more than 500 square feet, contained entirely within the walls of the existing house.

Custom ADU construction goes through it properly.

Plans and permits usually take longer than people expect. Construction usually takes about as long as they expect. The build is measured in months rather than weeks, and the honest answer for any specific project comes after seeing the lot and finding out what the local jurisdiction wants.

Yes. California Contractors State License Board license number 771814. Licensed, bonded and insured, and in business since 1999.

Yes, 10 percent. Mention it when you call.