An Interim loan is best considered as temporary financing until something gets done or a change occurs. These loans are an excellent financing option when in the construction phase of structure, much like a construction loan.

There is a little flexibility when it comes to the term of these interim loans. They range from 6 months to 5 years, and the most typical is 3 years. The interest rates most often float over a defined loan index for the term of the loan and adjust or reset at maturity. In some instances the rate can be fixed.

Get more information on Interim Loan in the Real Estate Forum.