Traditional mortgages and conventional financing are often not available to property owners because the loan is based off of a structure that does not yet exist. A construction loan is typically a short term loan that is used to pay for the cost of building a home, office, or structure. This enables property owners to finance the cost of building the property and at the completion of the construction, property owners then can pay off the construction loan with traditional financing, a conventional mortgage, or an “end loan”.
Construction Loans are paid off at the end of the construction when you essentially refinance your property now that the structure has been completed. Harbor Private Equity offers construction loans to property owners that are seeking financing but have failed to get approved through conventional methods.