A new construction loan is a type of loan that provides financing to individuals or businesses who are looking to build a new property, such as a residential or commercial building. The loan is typically used to cover the cost of construction, including materials, labor, and other expenses associated with building a new structure.

New construction loans can be obtained from banks, credit unions, and other financial institutions that offer construction financing. The terms and conditions of the loan may vary depending on the lender, but in general, new construction loans are typically short-term and disbursed in stages.