Wikipedia
A construction loan (also called a home construction loan in the United States and self-build mortgage in the United Kingdom) is any value added loan where the proceeds are used to finance construction of some kind. In the United States Financial Services industry, however, a construction loan is a more specific type of loan, designed for construction and containing features such as interest reserves, where repayment ability may be based on something that can only occur when the project is built. Thus, the defining features of these loans are special monitoring and guidelines above normal loan guidelines to ensure that the project is completed so that repayment can begin to take place.
Usage examples of "construction loan".
Then the folks with the construction loan'll get antsy, and gawd only knows what they'll do.
Perhaps the family intended to use the Simmons Wood property as collateral on a construction loan and wanted to lock in before interest rates shot up.
That verdict you mentioned paid off the construction loan, though.