Finance
A 'gap mortgage' in New York is most commonly used when:
AA borrower's credit score falls in the 'gap' between prime and subprime
BThere is a financing gap between what a construction lender will provide and what is needed, often filled by a mezzanine or equity partner✓ Correct
CA buyer needs financing for the period between contract signing and closing
DA lender fills the gap between the purchase price and appraised value
Explanation
A gap mortgage or gap financing in New York commercial real estate addresses the financing gap in a capital stack — the difference between the senior construction or permanent mortgage and the total cost of the project. This gap may be filled by mezzanine financing, preferred equity, or subordinate debt. The 'gap' is also sometimes used to describe bridge financing between a construction loan and a permanent mortgage.
Related New York Finance Questions
- Pre-qualification for a mortgage differs from pre-approval in that:
- When a mortgage lender sells a loan on the secondary market, the original lender:
- In New York, a 'satisfaction of mortgage' is recorded when:
- An adjustable-rate mortgage (ARM) in New York typically features a rate that is tied to:
- Which of the following best describes 'amortization'?
- In New York, a 'purchase money mortgage' is one where:
- In New York City, a 'flip tax' in a co-op building is:
- In New York, the 'Community Reinvestment Act' (CRA) rating of a bank affects:
Practice More New York Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New York Quiz →