With a construction loan, the builder will receive the funds in “draws,” which correspond to different phases in the construction process. The first draw, for example, may occur during the framing stage. The next draw may be when the drywall or HVAC systems are installed. A construction-to-permanent loan is a single loan that funds construction, then converts into a mortgage. In an end loan, the borrower would still have to take out a separate mortgage to pay off the house.