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construction loan

   Also found in: Wikipedia 0.01 sec.
Construction loan
A short-term loan to finance building costs.
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 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 loan originated for the purposes of providing payment for construction work or subdivision development.See also building loan agreement.


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? Mentioned in ? References in periodicals archive
 
The new agreement specified that if the extended construction loan went into default -- which it has -- the bank would place $1.
Wilshire Robertson Plaza sits at center of legal dispute by Berton, Brad / Los Angeles Business Journal
CHICAGO -- Fitch Ratings assigns the first construction loan servicer rating to JP Morgan Commercial Real Estate Loan Administration (CRELA).
Fitch Assigns 1st Construction Loan Servicer Rating to JP Morgan CRELA by Business Wire
County construction loan volume plummeted nearly 80 percent between 1989 and 1991, while Dataquick's numbers show only a 67 percent drop.
Property-data firms cite widely divergent numbers by Nodell, Bobbi / Los Angeles Business Journal
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