Construction Loans

Construction loans are short-term financing options used to fund the building of a new home or project. Unlike traditional mortgages, they provide funds in stages, known as draws, as construction progresses. The borrower typically pays interest only during the construction period, which usually lasts up to a year. Once the project is completed, the loan can convert into a permanent mortgage, or be paid off with a new loan. These loans help cover costs like materials and labor, but require careful planning and financial oversight to ensure the project stays on budget and schedule.