Hard money or construction loan? Which is better?

My mortgage broker told me that the builder gets paid directly through the mortgage company and will need to approve all the decisions on where the money goes to the house and paying the builder. Is this a hard money loan scenario? I heard that a construction loan would be better since hard money loans have higher rates. My broker is telling me to forget about a construction loan and stick with hard money. We are in the early stages of construction and can't move forward until funds are released Credit is 715 currently. by jengeck659 from Arlington, Arizona. Apr 4th 2023 Reply