Concepts Definitions
Participation Loan (or Participation Mortgage): A type of commercial loan where the lender receives some ownership and/or income interests in the subject property. The lender wants to be part of the project and have an interest in it.
Package Loan: A mortgage where the principal loan amount is raised to include both real property and movable items (personal property) like appliances, as collateral.
Take-out Loan: Permanent financing that replaces a short-term construction loan once the property is fully built.
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