Construction Financing: Funding Options for Building Projects

Construction financing provides the capital needed to fund residential, commercial, or infrastructure projects from start to completion. Unlike traditional loans, construction loans are typically short-term and released in stages as work progresses. Borrowers often use them for land purchase, labor, materials, and equipment costs. Common financing options include construction-to-permanent loans, commercial construction loans, and government-backed programs. Lenders may require detailed project plans, budgets, and inspections before approving each draw.