A construction loan is a short-term financing solution designed to fund ground-up builds, major renovations, or property expansions. It provides investors with immediate capital to cover costs throughout the construction process, typically disbursed in stages based on project milestones. Construction loans are ideal when traditional financing isn’t viable due to timing, project complexity, or borrower liquidity. These loans are secured by real estate and are structured to be repaid within 6 to 24 months, either through a sale, refinance, or permanent loan takeout.
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