Can we collect prepaid interest on a C/P loan? I'm asking because we are being told that our first payment on the one-time close needs to coincide with the billing cycle for the permanent phase which would be the 1st of the month. So if we close on a construction loan mid-month with an initial advance, can we collect prepaid interest until the 1st.

Thanks!

How can you calculate prepaid interest on a multiple advance construction loan? Would you not just bill for accrued interest on the first of the month?