Interim Financing

Simple Definition: A construction loan made during completion of a building or a project. A permanent loan usually replaces this loan after completion.


Interim financing is a type of short-term loan that helps bridge the gap between the purchase of a new property and the sale of an existing one. This type of financing is commonly used in the real estate industry to help buyers secure the funds they need to purchase a new property while waiting for the sale of their current one.

Interim financing is usually provided by banks or other financial institutions and is typically secured against the property being purchased. This means that if the borrower is unable to repay the loan, the lender has the right to take possession of the property.

Interim financing can be a great option for real estate buyers who are looking to purchase a new property but are still waiting for their existing property to sell. This type of financing can help buyers avoid having to delay their purchase or miss out on a great opportunity due to a lack of funds.

However, it is important to remember that interim financing can be more expensive than traditional loans and may come with higher interest rates and fees. It is also important to carefully consider the terms and conditions of the loan to ensure that it is the right choice for your specific situation.

In conclusion, interim financing can be a useful tool for real estate buyers who need short-term funding to purchase a new property. However, it is important to carefully consider the costs and terms of the loan before deciding to move forward with this type of financing.