Finance
What is a 'participation mortgage' as it might be used in North Dakota commercial real estate?
AA loan shared equally between two lenders
BA mortgage where the lender shares in some of the property's income or appreciation in exchange for a lower interest rate✓ Correct
CA government-guaranteed mortgage
DA mortgage for tenant improvements only
Explanation
A participation mortgage gives the lender a share of the property's income (equity participation) or future appreciation in exchange for providing financing at below-market rates. It is used in commercial real estate to align lender and borrower interests.
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