A: Construction loans are designed to be short term, only for the duration of the construction project. The loan funds are usually disbursed in installments as the project progresses. There is typically a construction escrow set up at a title company which disburses the funds to contractors and requires the submission of a variety of documents before each installment is distributed. Repayment of the loan is generally not due until after the project is completed and then it is typically paid with an end loan i.e. a standard 15, 20 or 30 year mortgage loan.