Definition of "Take-out loan"

Marty Welsh real estate agent
Marty Welsh, Real Estate Agent The Bob Lucido Team, LLC of Keller Williams Integrity

Form of financing that replaces or "takes-out" a construction loan to a developer. The take-out loan is a permanent mortgage loan which replaces the construction loan when, commonly, the builder has successfully sold, at minimum, a majority of the units under construction. A developer must arrange take-out financing before ha can hope to get a construction loan.

Have a question or comment?
We're here to help.

 
 
 
*** Your email address will remain confidential.
 
 
 

 

Popular Real Estate Terms

Popular Real Estate Questions