Construction loans are intended to finance construction of a physical structure rather than to be long-term financing. Residential construction loans may be converted to permanent after a home is complete in some cases, while most commercial construction loans require refinancing in order to exit them. They tend to be a few years in length, depending on the time it takes to build the structure, and have higher interest rates than conventional funding.
Before We Build Another House, Let’s Ask Ourselves an Important Question
There’s a growing drumbeat in the industry right now: in many markets, it’s cheaper to build new...
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