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Construction Loans | Home Construction Loans | BB&T Bank – A construction loan is a short-term loan-usually about a year-used to fund the construction of your home, from breaking ground to moving in. With a BB&T construction-to-permanent loan, your construction financing simply converts to a permanent mortgage when your home is complete.

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Most of these home construction loans have a limited construction term, often no more than a year. During construction, the lender will disburse money to the builder as work progresses, and you typically make interest-only payments calculated on the amount of the loan that has been disbursed.

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Led by government spending, U.S. construction rises to nine-month high in February – The boost in residential construction spending along with falling mortgage rates signal the next few months may be a strong period for home sales, he said. “For builders to come back like this, they.