What term applies to the use of third-party financing that is used between funding advanced by the permanent lender and funds needed to repay the construction loan?

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Gap financing refers to the use of third-party financing to fill the gap between the funds needed to repay the construction loan and the funding advanced by the permanent lender. This typically occurs when there is a delay in obtaining permanent financing, and the construction loan is coming due. Gap financing is a short-term solution that helps to bridge the gap until permanent financing can be secured. Interim loans are typically used to finance the construction period itself, while mini-perm financing is used to bridge the gap between the construction period and obtaining the full long-term financing. Partial financing is a general term that could refer to a variety of types of financing.

What Term Applies to the Use of Third-Party Financing That