risk financing


A real estate property loan allowing the owner the ability to borrow as well as make repayments at will rather than on a set repayment schedule, although some accumulated interest payments will be due periodically. The borrower is also able to use more money from the loan if there are more funds available under the loan ceiling.

Use risk financing in a sentence

I will be risk financing my first home for several reasons, However; there are other loans available that will allow me the ability to borrow, as well as make repayments.

​ Was this Helpful? YES  NO 7 people found this helpful.

Real estate agents looking to buy houses to turn over for profit need to investigate risk financing as it provides the agent with the opportunity to pay off the loan on his or her own terms as long as periodic interest payments are made and it allows the agent to borrow against the loan if the expense has not met the loan ceiling.

​ Was this Helpful? YES  NO 8 people found this helpful.

When buying a new home, I would prefer to use a risk financing model than a typical mortgage because it will give me the flexibility I need with my fluctuating income as a freelancer to make repayments at will instead of on a schedule.

​ Was this Helpful? YES  NO 8 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
risk discount Associate in Risk Management (ARM)