A construction loan is a short-term loan used to finance the building or renovation of a home or other real estate project. The loan is typically paid out in installments as the construction progresses, and it is secured by the property being built or renovated.
A construction loan is a short-term loan used to finance the building of, or renovation of a home or other real estate project. These loans are typically are typically paid out in installments as the construction progresses. Construction loans are typically more difficult to obtain than traditional mortgages, as the lender must evaluate the plans and specifications for the project, as well as the builder’s/contractor’s ability to complete the project within a specified time frame and budget. However, construction loans can be a good option for those who want to build or renovate a home, as the lender disburses construction costs as they occur, rather than all upfront.
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