Construction Loan - A loan taken
out for the purpose of building a new structure on a piece of land.
Construction loans are usually interest-only loans which have "draw periods" of
up to 24 months. The draw period is the time frame where the builder can
withdrawal money from the available balance to purchase building supplies.
Because of this setup, a borrower only pays interest on the money spent during
construction. All construction loans must eventually be refinanced into a