interim construction loan definition
A short term interim loan for financing the cost of construction. The lender advances funds to the builder as the work progresses. A construction loan differs from a typical mortgage. For one thing, it is used for a home that you are having built instead of for a resale home. With a construction loan, the lender needs to know exactly what is going on with the building of the home. The lender may want to know the timeline of completion of the home as well as the details of the actual construction.