Interim Financing
Definition
- The availability of funds on a day to day basis to assist a developer in financing the construction of project between advances made by the lender of the construction loan.
Synonyms
construction draw, construction advance
Related Terms and Acronyms
- Bridge Mortgage — Definition, Important,
- A short-term loan used to allow a homebuyer to purchase a replacement property while still trying to sell their existing home.
- Construction Budget — Definition,
- Money that the builder sets aside for building a structure.
- Construction Loan — Definition,
- A short-term interim loan for financing the cost of construction. The lender makes payments to the builder at periodic intervals as the work progresses.
- Draw Mortgage (DM) — Acronym,
- A periodic payment made to a construction contractor or subcontractor as work progresses. A draw is part of a construction mortgage.
➥ See Progress Advance Mortgage (PAM). - Land Draw — Definition,
- A construction loan backed by the value of the land.
- Loan — Definition,
- Letting another party use something of value temporarily.
- Mortgage (mtg) — Abbreviation, Important,
- A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
- Takeout Mortgage Loan — Definition, Important,
- A long term mortgage loan that is advanced to borrower on completion of construction or in compliance with any other conditions in the loan commitment. The funds are normally used to pay off or take out the construction lender.
