The answer provided did not answer the question. There were 3 loans: (1) the original construction loan, (2) the unsecured loan that I needed to get to pay for the over-budget costs, and (3) the HELOC. I could not get the HELOC until the original construction loan transformed into a regular mortgage. The bank would not transform the construction loan into a regular mortgage until the builder agreed that he had been paid all his costs. I needed to get the unsecured loan so that I could pay the builder all his costs. I received 1098s for the original construction loan (which converted to a regular mortgage) and the HELOC (which paid off the unsecured loan). But I did not get a 1098 for the interest on the unsecured loan. Is that interest deductible? The monies for the unsecured loan were definitely used for the building costs. Thanks!
