Construction Loans

Construction loans are short-term financing options specifically designed to fund the construction of a new building or the renovation of an existing property. These loans typically have higher interest rates than traditional mortgages, but they offer the flexibility to draw funds as needed throughout the construction process. Once the project is completed, the construction loan is often refinanced with a long-term mortgage.

Key features of construction loans:

• Short-term: Typically lasts for the duration of the construction project.
• Higher interest rates: Compared to traditional mortgages.
• Flexible draw schedule: Funds can be drawn as needed throughout the project.
• Refinancing: Often refinanced with a long-term mortgage after completion.

Construction loans are essential for builders and developers who need financing to complete their projects.