construction loan

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Construction loan

A short-term loan to finance building costs.

Construction Loan

A short-term loan used to finance the building of some real estate project. The builders take out a construction loan in order to begin the project while they obtain long-term funding. Because there is no guarantee that the builders will be able to obtain long-term funding and a construction loan is not intended to fund an entire project, construction loans are fairly risky, and, as a result, have high interest rates.

construction loan

A short-term mortgage taken to finance the construction of a real estate project before permanent long-term financing is obtained. Because of its relatively high return, some real estate investment trusts specialize in this type of loan. Construction loans are often more risky than long-term mortgages.

construction loan

A loan originated for the purposes of providing payment for construction work or subdivision development.See also building loan agreement.
References in periodicals archive ?
Currently, there is no formal education for the CLN role or any formalised practice standards.
Platinum (90-100 points) Category: Electronic Media E-Communication -- E-Newsletter CLN Stat eNewsletter, March 5, 2015 issue
Jantsa and CLN spokespersons say that the joint venture seeks to export 25 million euros worth of wheel rims a year and earn revenues of roughly 50 million euros annually.
Among the hybrids, CLN 2026E x SL 120, LE 812 x SL 120, CLN 1464 A x SL 120 and CLN 2026C x SL 120 recorded high mean performance for root length and these four hybrids only showed positive significant heterosis over the best parent.
The 50,000-square-foot shop had remained idle since parent company CLN Ventures Inc.
The CLN is a natural next step in the evolution of clinical labs over the past two decades.
This exercise would cause an early termination event and could expose holders of the affected CLN to potential termination payments and currency exchange risk.
Clinical nurse specialist for Dunedin forensic services and a former CLN, Patsy-Jane Tarrant, discussed findings from her doctoral research on the CLN role.
This deal also offers for a rise in capital in the site and a partial transfer of Moatize and CLN debts to Vale.
As a result of the new concession award, CLN will continue to develop and expand its product offering.
Fitch's analysis for this rating action relied upon the Two-Risk CLN Matrix with Restructuring.