A short-term loan (often used in construction) made with the expectation of repayment from the proceeds of another loan. For example, a construction loan is usually a short-term loan used to fund the actual construction of the subject property. As soon as the construction is complete, the construction loan must be refinanced with a standard long-term loan. For more information about how lenders assess income, see the "Construction Loans" article in the "Loan Programs" section.
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