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Construction Loans 101: Your Ultimate Guide to Building Your Dream Home

A construction loan is a specialized type of loan designed to fund the construction or renovation of a new home. Unlike traditional mortgages, which are disbursed in a lump sum, construction loans are typically provided in a series of disbursements, known as “draws,” as the construction progresses. These draws are based on the completion of specific stages of the construction project and are closely monitored by the lender.

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