What is the difference between a property development loan and a construction loan?

A property development loan is extended to a business or organization looking to develop land for a profit. A construction loan, by contrast, is given to an individual or small group of individuals hoping to build a residency. If you want a loan to build a home for yourself, your family or an individual profit, you should try to obtain a construction loan. If you own a real estate development business or trust, you will need a property development loan. This loan is granted based on your business plan and likely profit rather than just your personal financial status.