No principal - but interest payments. You need to have some sort of "down payment" on the loan. there are discussions on this in real estate blog.
Anonymous
01/23/2013 10:35
Subject: construction loan
We paid interest only during construction.
Anonymous
01/22/2013 21:21
Subject: Re:construction loan
If you're tearing down, can you take out a construction loan?
Anonymous
01/22/2013 21:18
Subject: construction loan
There are typically no payments during construction.
Anonymous
01/22/2013 19:10
Subject: Re:construction loan
Thanks! And how were the loans structured? We're paying a mortgage on our current home and trying to figure how to manage both loans when the time comes.....