A minimum amount that a lender is willing to loan.
Amount of money a lender will provide as a basis for a loan until such time as cash flow on a property will justify an increase. The maximum amount would be the ceiling.
The portion of a mortgage loan that the lender agrees to advance without regard to the fulfillment of project leasing requirements. For example, a floor loan equaling 80 percent of the full amount may be funded upon completion of construction without occupancy requirements but substantial occupancy of the building may be required for funding the full amount of the loan.
A portion of a mortgage loan that may be funded upon conditions less stringent than those required for funding the full amount. For example, the floor loan, equal to perhaps 50 percent of the full amount, may be funded upon completion of construction without occupancy requirements, but substantial occupancy of the building may be required for funding the full amount of the loan.
The lower of two amount of a single take out loan. For example: A lender agrees to loan on an office building being constructed, in the amount of eighty percent of appraised value if the building is seventy-five percent occupied, but only seventy percent of appraised value if the building is less than seventy-five percent occupied. The lower amount is the floor loan.
The smallest amount that a lender is willing to loan.
The minimum amount of money a lender is willing to provide on a commercial loan for a building that is to be tenant occupied. This loan is progressively funded as the building is constructed and occupied.