---
title: What is a construction loan?
description: "Financing to build a home on land. This is a two-step process: a loan is obtained to build the property and then a loan is obtained for mortgage financing."
---

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# What is a construction loan?

## A construction loan is financing used to help build a home.

A construction loan is financing used to help build a home.

Construction loans facilitate the process of building a home on a plot of land. The construction lending program consists of **2 loans** – **a short-term construction loan** and **permanent financing** that kicks in once the home is complete.

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