What type of loan is specifically intended for the development of residential subdivisions or medium rise residential buildings?

The type of loan specifically intended for the development of residential subdivisions or medium-rise residential buildings is a direct developmental loan. This loan is designed to finance the costs associated with the actual development process, including land acquisition, site improvement, and construction of residential properties.

Unlike construction loans, which may be utilized for both residential and commercial buildings and could sometimes be short-term and focused on the building stage, direct developmental loans are tailored to the unique needs of housing projects, emphasizing residential development rather than broader uses. This distinct focus enables developers to access funding that is aligned with the specific stages and costs of creating residential communities.

This clarity in purpose differentiates direct developmental loans from other loan options, which may either focus on the purchase of property or involve broader commercial applications. By targeting residential subdivisions and medium-rise buildings, direct developmental loans fill a critical niche in supporting housing initiatives and development projects.