*Loan,banking and credit>>>mortgage loan

What differences are there between a regular mortgage loan and a contruction loan?

For example, are the interest rates comparable? Would it be harder to get a construction loan?

ok a construction loan is different because you only pay on the interest on the money that is out in other words for the first few months they are slowly taking out money to build the house so you dont get charged for the full amount until the house is completed. the loan on a construction loan once complete and a certificate for occupancy has been issued after final inspection by county building inspectors. once you sign final paperwork your loan converts to a mortgage for whatever terms you agreed to.

a regular mortgage once you sing final paperwork at closing you are paying interest on the full amount of the loan.

A regular mortgage would be a lump sum on an existing home that is already constructed. A construction loan is a large line of credit to where you can write out checks to contractors as the home is being constructed. Once you complete building, you will have to convert the construction loan into a permanant loan. Rates are usually a little higher on construction loans because they are not designed to be long term.
Usually it's building contractors who get 'construction loans' with their contract with the client as collateral. Often these are sought for each phase of a big project as it progresses. A mortgage loan is generally what you get when you purchase an already built house, and the house is the collateral. In both cases, if the contractor or homeowner defaults on a loan, the lender gets either the house [the built one] or the in-progress project for whatever they can take of it. Interest rates vary by region, by type of loan, what the down-payment was, who the borrower is and what their credit record is like, what their income is from employment, and in the case of building contractors, what their business reputation has been [prior loans paid off, size of projects worked, etc.]. Hope this helps...?
Hi,

Mortgage loan is for already built house or home improvement and construction loan stands for financial assistance to get the new house built. Mostly interest rates are almost same in both the cases. Checkout http://mortgage.creditmortgagepro.com... for some useful info and tips. Good luck!