Construction Loans: What Options Do Clients Have?
Before we dive into the specific types of construction loans, let’s clarify what a construction loan is and how it differs from a traditional mortgage. A construction loan is a short-term loan specifically designed to fund the construction of a new home. Unlike a mortgage used to purchase an existing home, a construction loan provides financing to cover the costs of building from the ground up. Typically, construction loans have higher interest rates and shorter terms than traditional mortgages, reflecting the higher risk associated with financing a property that doesn’t yet exist.









