Gap financing
Encyclopedia
Gap Financing is a term mostly associated with mortgage loan
s or property
loan
s. It is an interim loan given to finance the difference between the floor loan
and the maximum permanent loan as committed.
Mortgage loan
A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan...
s or property
Property
Property is any physical or intangible entity that is owned by a person or jointly by a group of people or a legal entity like a corporation...
loan
Loan
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower....
s. It is an interim loan given to finance the difference between the floor loan
Floor loan
Floor loan is mostly associated with mortgage and property loans.It is the minimum amount of money a lender is willing to provide on a commercial loan for a building that is to be tenant-occupied. This loan is progressively funded as the building is constructed and occupied....
and the maximum permanent loan as committed.