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What is a Construction Loan and how does it differ from a Permanent Loan?

April 26, 2017Construction differ loan PERMANENT

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What is a Construction Loan and how does it differ from a Permanent Loan?

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A regular (or permanent) mortgage loan provides funds for an existing home. A Construction Loan covers both the cost of building the home as well as the Permanent Loan. Also, with a Construction Loan, funds are advanced in increments as the home is being built, which differs from a Permanent Loan where money is given upon completion of a home or on an existing home.