A builder’s load is granted to an individual or a builder to build a house or project. Usually, there is a mortgage arranged which will be funded (in four phases) as the house or project progresses. When the house or project is complete, the term and amortization of the mortgage begins and the interest rate is established at this time.
This type of a loan is granted to an individual the lender normally requires that the mortgage advance up to 25% of the total cost of the project first, before the loan is advanced. Quite often the first 25% is required to prepare the land. This will allow for the load to build and the subsequent mortgage to be registered in the owner’s name.