A temporary, short-term loan that is required to complete the purchase of a new property. This loan is usually made conditional on a long-term mortgage loan (takeout). It is often sought by property owners who have either not sold their property or have a firm offer from a potential buyer but have not yet reached a final sale agreement. Property owners may use the money of an existing property as a down payment on a new property, taking an interim financing loan to cover the balance.
It is also known as a interim financing.
