New Construction Loan Terms

[Derek Malveaux]

I was recently approved and received loan terms for a new construction SFR spec loan. I have experience with fix and flip but this is my first new construction project. The interest rate is 12.5%, which is understandable with no track record. The loan point is 4%, high but i'm new. What I was not expecting was a fixed monthly interest only payment on the full amount of the loan. This includes paying interest on funds that have not been drawn. Is this common for new construction loans?