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 ?
15, 2015 /PRNewswire/ -- Morningstar Credit Ratings, LLC today raised its construction loan servicer ranking to 'MOR CC2' from 'MOR CC3' and affirmed its 'MOR CC3' construction loan special servicer ranking for Sabal Financial Group, L.
The agreement with Trimont equips Amalgamated with access to top talent in loan sourcing, credit underwriting and construction loan servicing, thereby enabling the bank to expand funding for the construction and rehabilitation of affordable homes for working families.
Non-traditional construction lenders such as life insurance companies, specialty finance companies and real estate investment trusts (REITs) are funding new construction projects through the use of third-party construction loan administrators.
Construction costs have been climbing and obtaining a $90 million construction loan is always a drawn-out process, Cavallari said.
Thirty-one Construction Loan Officers Receive Special Certification
25, 2014 /PRNewswire/ -- Morningstar Credit Ratings, LLC today affirmed its 'MOR CC3' construction loan servicer and construction loan special servicer rankings for Sabal Financial Group, LP.
DARA's president, Paul Horvitz, and executive vice president, Keith Olson, negotiated the extension, discount and loan modification of an expired bank construction loan on behalf of the borrower.
TT Lender Solutions has achieved unprecedented growth as a third-party construction loan administrator and default-management service provider.
In addition, Fitch assigns KBREC a construction loan servicer rating of 'CCLS3+'.
Sabal) its 'MOR CS3' ranking as a commercial mortgage primary servicer and its 'MOR CC3' ranking as a construction loan servicer and special servicer.
A $5,305,000 first lien mortgage for a construction loan for a 12 unit multifamily property in Washington, DC.
CHICAGO -- Fitch Ratings assigns Wachovia Securities (Wachovia) a construction loan servicer rating of 'CCLS3+'.

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