This section is from the book "Real Estate Principles And Practices", by Philip A. Benson, Nelson L. North. Also available from Amazon: Real Estate Principles and Practices.
Farmers borrow on mortgage to purchase their farms, to erect buildings, to purchase tools, machinery, seed and fertilizer, to hire labor and to pay off existing indebtedness.
Builders - Those who erect buildings, either for their own use or to sell to others, frequently borrow a large part of the cost on a mortgage. If the mortgage is advanced during construction it is known as a building loan mortgage. Many building loan mortgages become permanent mortgages on completion of the building.
 
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