Construction Loan

A construction loan is short-term financing used to fund the building of a new home or a major renovation. Unlike a mortgage, funds are released in phases (called "draws") tied to construction milestones — foundation, framing, mechanicals, drywall, completion. Rates are typically 1-3 points higher than traditional mortgages, and terms run 6-18 months.

Most construction loans convert to a permanent mortgage at completion (a construction-to-perm structure), or the borrower refinances into a traditional mortgage once the home is finished and the certificate of occupancy issues.

Why it matters for Milo customers

Crypto holders often find construction loans rigid: extensive documentation, slow draw approvals, strict builder requirements. A Milo crypto-backed loan can serve as a faster alternative — funded in 24 hours against crypto collateral, with no property lien, no phased draws. Once construction completes, refinance into a Milo crypto-backed mortgage for long-term financing.

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