Why Lenders Fund Custom Home Builds In Increments

When a homebuyer is having a custom home built by a local builder – it’s common for that builder to require a construction loan. A construction loan (aka a cp loan) is one in which allows a smaller, custom homebuilder to build a house for a client who doesn’t have the ability to pay cash for the build. This constrain loan also prevents the builder from having to front the cost of the construction.