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.