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Tandem Loan

What is 'Tandem Loan'

Two loans taken out on one asset, which is usually a house; the secondary loan is normally added to a primary loan. A tandem loan may also refer to a lending facility that enables businesses to bridge the gap between commercial loans and other sources of funding, with loan proceeds used for working capital, acquisitions, or land and equipment. They could provide monetary assistance to builders and developers of nonprofit public housing.

Explaining 'Tandem Loan'

A specific type of tandem loan is the Federal Housing Administration's FHA/VA Tandem Loan, which is only available to veterans for financing single-family loans. Tandem loans should not be confused with a tandem plan, which refers to a mortgage purchase program involving Fannie Mae and Ginnie Mae.


Further Reading


A macroprudential approach to address liquidity risk with the loan-to-deposit ratio
www.tandfonline.com [PDF]
… At least at the country level, EME banks seem to move in tandem … Cavallo, M., Majnoni, G. (2002) Do banks provision for bad loans in good times … Foos, D., L. Norden and M. Weber (2010): “Loan growth and riskiness of banks”, Journal of Banking and Finance 34, 2929 – 2940 …

Real Estate Finance: The Discount Point System and its Effect on Federally Insured Home LoansReal Estate Finance: The Discount Point System and its Effect on Federally Insured Home Loans
heinonline.org [PDF]
… At least at the country level, EME banks seem to move in tandem … Cavallo, M., Majnoni, G. (2002) Do banks provision for bad loans in good times … Foos, D., L. Norden and M. Weber (2010): “Loan growth and riskiness of banks”, Journal of Banking and Finance 34, 2929 – 2940 …

Moving in tandem: bank provisioning in emerging market economiesMoving in tandem: bank provisioning in emerging market economies
papers.ssrn.com [PDF]
… At least at the country level, EME banks seem to move in tandem … Cavallo, M., Majnoni, G. (2002) Do banks provision for bad loans in good times … Foos, D., L. Norden and M. Weber (2010): “Loan growth and riskiness of banks”, Journal of Banking and Finance 34, 2929 – 2940 …

Re-engineering agriculture for enhanced performance through financingRe-engineering agriculture for enhanced performance through financing
papers.ssrn.com [PDF]
… At least at the country level, EME banks seem to move in tandem … Cavallo, M., Majnoni, G. (2002) Do banks provision for bad loans in good times … Foos, D., L. Norden and M. Weber (2010): “Loan growth and riskiness of banks”, Journal of Banking and Finance 34, 2929 – 2940 …

The challenge of financing higher education and the role of student loans scheme: an analysis of the student loan trust fund (SLTF) in GhanaThe challenge of financing higher education and the role of student loans scheme: an analysis of the student loan trust fund (SLTF) in Ghana
link.springer.com [PDF]
… At least at the country level, EME banks seem to move in tandem … Cavallo, M., Majnoni, G. (2002) Do banks provision for bad loans in good times … Foos, D., L. Norden and M. Weber (2010): “Loan growth and riskiness of banks”, Journal of Banking and Finance 34, 2929 – 2940 …



Q&A About Tandem Loan


How does the government help with low-income housing?

The government has various programs to help with low-income housing.

What is a tandem loan?

A tandem loan is when two loans are taken out on one asset, which is usually a house. The secondary loan is normally added to the primary loan.

What was Tandem Loan replaced by in 219?

In 219, new loans were no longer being funded through the Brooke-Cranston Tandem Plan, but other programs still existed to help with low income housing.

Is a tandem loan always for real estate?

No, it can be used for other things like business funding or nonprofit housing.

What does tandem mean?

Tandem means that something happens at the same time as another thing.

What is Tandem Loan?

Tandem Loan is a loan that helps low-income families.

How do you get a FHAVA Tandem Loan?

You must be a veteran and have been honorably discharged from military service in order to qualify for this type of loan.