How Does A Construction Loan Work

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 Loan Finance

How Does A Construction Loan Work