Hard-Mini Perm

Hard Mini Perm Loan: A "hard" mini perm loan is a variation of a mini perm loan. The difference between a standard mini perm and a hard mini perm typically comes down to the loan's terms and covenants.

A hard mini perm loan will have covenants and terms that force the borrower to refinance as soon as the property is stabilized, meaning that it has reached a certain level of occupancy and income generation. In contrast, a soft or standard mini perm loan would typically allow the borrower to continue with the mini perm loan for its full term if desired.

The term "hard" comes from the stricter requirements and the shorter timeline for refinancing in a hard mini perm loan. It essentially means that the loan has a "hard" deadline, at which point it must be refinanced. These types of loans can be more risky for borrowers due to the necessity of securing new financing relatively quickly after the project has stabilized.