REAL ESTATE GLOSSARY
Permanent Loan
Permanent Financing
Longer-term debt generally used for stabilized income-producing property.
What does Permanent Loan mean?
Longer-term debt generally used for stabilized income-producing property. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
Permanent Loan in context
After lease-up, a developer replaces construction debt with a ten-year permanent loan.
Why it matters in financing
Permanent Loan can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related real estate terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.