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As Disbursed
What does As Disbursed mean?
As Disbursed is a term used by private lenders when they are only charging interest for the amount of a fix and flip loan that has actually been disbursed to the borrower. This means undrawn construction holdback funds will not accrue interest until a draw has been requested and the funds have been wired to the borrower.
Other terms for As Disbursed
As Disbursed is also referred to as "Non-Dutch" and "New York Interest".
As Disbursed is a more cost effective arrangement than Full Boat because interest is not charged on the construction holdback portion of the loan until draw requests have been processed. Then and only then is the borrower charged interest on the amount actually drawn from the construction loan rehab budget.
