| 释义 |
Construction loan
Construction loanAn interim loan of money secured by a negotiable bond or mortgage, or trust deed. The money obtained is intended to defray the cost of the building to be erected. Usually advanced in specified sums during the progress of construction. After completion, the loan is often converted into a long-term loan.construction loanA loan to a builder for a short term, financing construction prior to permanent financing.construction loan
Construction loanA short-term loan to finance building costs.Construction LoanA 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 loanA loan originated for the purposes of providing payment for construction work or subdivision development.See also building loan agreement. |