Definition

• Financing specifically for constructing new buildings or significant property renovations from the ground up.

Ideal Borrowers

• Developers and investors building new properties or undertaking major renovations.

Down Payment

• Varies; often 20-30% of the total project cost.

Benefits

• Provides funds in stages as construction progresses;
• tailored for new builds.

Usage Limit

• Specific to new construction projects.

Strengths

• Ensures funds are available throughout the construction process;
• mitigates financial risks.

Considerations

• Requires detailed project plans;
• approval process can be complex;
• interest rates may be higher.