a loan requiring a single application process and fee which covers the construction costs of the project and converts to a permanent mortgage loan at the time of the Real Estate closing.
A single loan that includes both a construction loan element and a long-term mortgage. This type of loan may result in lower origination fees than would be required by two separate loans.
A loan that pays first for construction, then for a long-term, traditional mortgage, as distinct from a construction loan followed by a separate mortgage loan.