Take-Out Lender

What is ‘Take-Out Lender’

A type of financial institution that provides a long-term mortgage on property. This mortgage will replace interim financing, such as a construction loan. Take-out lenders are normally large financial conglomerates, such as insurance or investment companies.

Explaining ‘Take-Out Lender’

Take-out lenders replace short-term lenders such as banks or savings and loans. These entities usually view the properties for which they provide mortgages as investments. They expect them to provide capital gains when they are sold, in addition to receiving the mortgage payments.

Further Reading

  • Global financial instability: framework, events, issues – www.aeaweb.org [PDF]
  • Payday lenders and economically distressed communities: A spatial analysis of financial predation – www.tandfonline.com [PDF]
  • Responding to the housing and financial crises: mortgage lending, mortgage products and government policies – www.tandfonline.com [PDF]
  • On the economics of subprime lending – link.springer.com [PDF]
  • The effect of credit market competition on lending relationships – academic.oup.com [PDF]
  • Recent advances in lending to the poor with asymmetric information – www.tandfonline.com [PDF]
  • Post-socialist housing meets transnational finance: Foreign banks, mortgage lending, and the privatization of welfare in Hungary and Estonia – www.tandfonline.com [PDF]
  • Cause and effect: government policies and the financial crisis – www.tandfonline.com [PDF]