How Do Construction Loans Work? Infographic


Construction loans are interesting animals in the banking world.

They are very dynamic as they are usually fairly large loans and are made on a short-term basis.

I underwrite construction loans pretty much everyday.  However, I realized that I really didn’t know how construction loans worked for the borrower (read: not the lender).

Therefore, I am putting together a series this week on Construction Loans.

To kick off the series I made a simply infographic to explain the logistics of a construction loan.

 

Construction Finance

Construction Finance

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