In one sentence
Medium-term financing bridging construction and permanent debt, typically three to five years, on a recently stabilized property.
The longer version
A mini-perm gives a newly completed property time to season before qualifying for long-term permanent financing. It sits between the construction loan and the eventual takeout.
Mini-perms often carry extension options and performance hurdles, tracked through servicing as the property stabilizes toward its permanent refinance.
Common questions
- What is a mini-perm loan?
- Medium-term financing, often three to five years, that follows construction on a recently stabilized property, giving it time to build history before permanent financing.
- How is a mini-perm different from a bridge loan?
- A bridge loan funds a transition. A mini-perm follows one, financing a property that has stabilized but lacks the operating track record a permanent lender wants.
- Who typically offers mini-perm loans?
- Banks, often as a feature of a construction loan that converts to a mini-perm on completion and stabilization.
Keep reading