Review:
Construction Loans
overall review score: 4.2
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score is between 0 and 5
Construction loans are specialized loans that are used to finance the construction of a new home or building. These loans typically have a shorter term and may involve a different payment structure than traditional mortgages.
Key Features
- Shorter term
- Funds dispersed in stages
- Interest-only payments during construction phase
Pros
- Allows for financing of new construction projects
- May offer flexibility in terms of payment structure
- Interest-only payments during construction can help with cash flow
Cons
- Can be more complex and have stricter requirements than traditional mortgages
- Interest rates may be higher than standard mortgage rates