Construction projects are not cheap. Construction loans provide the money to cover all the expenses that occur in a construction project i.e. land, materials, and permits. In contrast to mortgage loans, the money is given in payments over a period of time. A schedule of values can ensure the money for the project is used properly. Usually, construction loans have interest rates that run higher than mortgage rates as there is no collateral. There are four different types of construction loans: renovation, owner-builder, construction-to-permanent, and construction-only. A rental income calculator can be helpful in determining the returns for a construction project depending on the terms of a construction loan.