What term applies to third-party financing that is used between funds advanced by the permanent lender and funds needed to repay the construction loan?
A)Interim loan
B)Mini-perm financing
C)Gap financing
D)Partial financing

Question

Quizplus · Accepted Answer

Gap financing refers to the short-term financing used to bridge the gap between the funds advanced by the permanent lender and the funds required to repay the construction loan. It is a type of interim financing that helps the borrower to cover the cost of the project until it generates sufficient income to repay the permanent loan. Mini-perm financing is a type of long-term financing that combines some of the features of permanent financing and short-term financing, while partial financing refers to a situation where only a portion of the financing required for a project is secured from a lender.

What Term Applies to Third-Party Financing That Is Used Between