What is Acquisition & Development Financing?

A&D loans are used primarily for development projects and to provide funds to cover the purchase of the land or prospective property. This includes funding for the subdivision and basic preparation of the project.

However, construction financing is usually not part of the acquisition and development (A&D) loan. Rather the construction loan, if any, will pay off the A&D loan and then provide additional funds for major improvements.

For more information, see also the following entries:

• :Construction Loan:
• eveloper:
• :Improvement:
• :Land:
• :Real Estate:
• :Real Estate Development:
• :Real Property:
• :Subdivision: