WHAT IS A CONSTRUCTION LOAN?
A construction loan is extended for the purposes of building a property or properties. A construction loan is usually taken with the intention of selling the property or properties upon completion and is paid back in percentages at pre-determined checkpoints of the construction stage.
Before a lender will advance a construction loan, they require a security on the proposed building site, proof that the relevant permits have been granted, verified building contracts, detailed plans and costing breakdowns of the project.
WHY DO I WANT CONSTRUCTION LOAN?
A construction loan is suited to larger projects built for the purposes of re-selling.
WHO WOULD BENEFIT FROM A CONSTRUCTION LOAN?
A construction loan is a way for businesses to take care of the construction costs of a project, without having to use their own funds up front.