Zillow Advice: Mortgage Types - Jumbo construction loan (water front) http://www.zillow.com/advice-thread/Jumbo-construction-loan-water-front/379343/ Zillow Advice | Zillow Real Estate Hi Masoud, I would not classify ... http://www.zillow.com/advice-thread/Jumbo-construction-loan-water-front/379343/ Hi Masoud, I would not classify construction loans easy or hard, More so they can be time consuming. You will need to own the lot outright and also have a substanstial down payment on the construction loan. You will need arcitect plans, a licensed general contractor in place and all permits prior to a loan being approved. Your General Contractor must be a licensed home builder. Interest rates can vary depending on amount of loan, down payment, credit scores ect. Generally speaking you will make interest only payments during the construction phase based on the actual amount of the disbusals. There are generally 5-7 funding disbursals over the course of construction. A disbursal is made each time a predetermined phase of the construction process is completed, inspected and approved.  The costruction loan is generally for a short term about 6 months to complete the home. Tue, 04 Jan 2011 21:35:00 GMT http://www.zillow.com/advice-thread/Jumbo-construction-loan-water-front/379343/ 2011-01-04T21:35:00Z