Word of the Day – The Language of Real Estate

Gap Financing
The financing used to make up the difference between the underlying loan (floor loan) and the total amount required.
Gap financing usually fills a temporary need until permanent financing is obtained, and thus is sometimes called a bridge loan or swing loan.
Gap financing may also be used when permanent takeout financing is difficult to obtain or is too expensive.
By obtaining gap financing and waiting, it is possible that more favorable terms may be reached.

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