A term used to describe short-term loans (12 months or less) secured by residential real estate. This term is often associated with residential investment properties as opposed to primary residences.
Similar to: Fix & Flip Lending, Business Purpose Lending (BPL)
When a borrower is looking to upgrade to a larger home but requires immediate funds to purchase the new property before selling their current one, they often rely on residential transitionary lending to facilitate the transition smoothly.