Tandem Loan


DEFINITION of '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.


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.

  1. Closed-End Credit

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  2. Commercial Credit

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  3. Loan Commitment

    A loan amount that may be drawn down, or is due to be contractually ...
  4. Open-End Credit

    A pre-approved loan between a financial institution and borrower ...
  5. Line Of Credit - LOC

    An arrangement between a financial institution, usually a bank, ...
  6. Debt/Equity Ratio

    Debt/Equity Ratio is debt ratio used to measure a company's financial ...
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