Interim Financing

Loan, including a real estate Construction Loan, used when the borrower is unable or unwilling to arrange long-term or permanent financing; generally arranged for less than three years. It is used to gain time for financial or market conditions to improve.

A loan, including a Construction Loan used when the property owner is unable or unwilling to arrange permanent financing. Generally arranged for less than 3 years, used to gain time for financial or market conditions to improve.
Example: Monroe developed an office building but, in the expectation of fallingInterest Rates does not wish to use permanent financing at this time. He arranges a 2-year interim loan, during which time he seeks favorable permanent financing.