What is a home construction loan?
A home construction loan is a type of home loan that is taken for a property that is still under construction. This type of home loan is useful when you have bought a plot of land and wish to build your home on it according to your own parameters. With such an offering, the entire loan amount isn’t disbursed once you get loan approval.
Instead, you can request for funding based on the stage of construction. As a result, you only pay interest on the amount utilized and not the entire sanction.
It is also important to note that such loans are only provided for the external construction of a home. It does not account for the interior designing and only works included in the approved plan will be carried out.