Construction Loan against: House Collateral Mortgage: That is Good for you step 1. Understanding the Principles from Structure Fund and you will Family Guarantee Financing understanding the basics of construction finance and you may family equity loans is crucial when it comes to and make informed conclusion about financing your home. Whether you are planning to build a new house from scratch or renovate an existing property, these two types of loans offer different advantages and considerations. In this section, we will delve into the intricacies of construction loans and house collateral loans, providing insights from various perspectives to help you determine which option is right for you.