When applying for construction loans there are many to choose from such as construction loan only or Construction to Permanent Loan - Interest Reserve and construction to permanent interest only loan. A little homework will be required when making the decision to obtain construction loans. Your next decision will be to decide what term you want to finance your construction loans. There are few choices here as well. 30 year, 20, or 10 are the most common of the terms. Remember when deciding on the term if you pay on a short term such as 10 you will be paying a higher monthly rate however you will have paid less interest over the term of the loan. A 30year term will save you money on a monthly basis but in the long run will cost you the most in interest.