The timing of the down payment for a construction loan can vary depending on the specific terms of the loan agreement negotiated between the borrower and the lender. In many cases, the down payment is due at the loan closing, which typically occurs before construction begins.
However, some construction loans may have different disbursement schedules, where the down payment is paid in installments or as specific construction milestones are reached. Additionally, the down payment amount can vary depending on factors such as the borrower's creditworthiness, the lender's requirements, and the size and complexity of the construction project.
It's essential for borrowers to carefully review the terms of their construction loan agreement to understand when the down payment is due and how much is required. Additionally, discussing any questions or concerns with the lender or a financial advisor can provide clarity on the payment schedule and ensure that the borrower is prepared to meet their financial obligations.