A construction loan is a short-term loan that provides funds to cover the cost of building or rehabilitating a home.

Construction loans are a fixed rate, generally up to 1 year during the construction period. The money borrowed through a construction loan is typically provided in a series of advances as the construction progresses. Payments are interest only based on the funds drawn.

You can pay off the balance in lump sum or you may be able to convert the loan to a conventional mortgage loan. You may have to reapply for a new loan. Your choices will depend on current rates and programs being offered when you apply.

All loans are subject to credit approval.