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Construction loans fund new builds; borrowers pay interest only on funds drawn. Two loan types: standalone (pay on completion) and construction-to-permanent (converts to mortgage). Alternatives ...

How Construction Loans Work Construction loans let future homeowners borrow money to purchase materials and pay for labor necessary to build a home. Often, this money also can be used to purchase the ...

We independently evaluate all of our recommendations. If you click on links we provide, we may receive compensation. Lars Peterson joined Investopedia in 2023 as a senior editor of financial product ...