A construction loan differs from a typical mortgage. It is used for a home that is being built by a contractor for resale.

As part of the funding Wasatch Credit will need to know the timeline of completion of the home as well as the details of the actual construction.  That is because in these circumstances, when you get a construction loan the builder draws money from it as needed during the process of building the house.  Wasatch Credit will need to make sure that the money is going where it is intended.

 

With a construction loan, you make interest-only payments during the actual construction period.  When the home is completed the entire balance of the loan is due.  That means you will probably need a new mortgage. Construction loans are for short terms, 6-12 months,and interest rates and loan fees vary by location.