In real estate finance, a Future Advance Clause is a provision in a mortgage or deed of trust that allows the borrower to obtain additional loan funds at a later date. These future advances are secured by the same mortgage or deed of trust and by the same real property as the original loan.
This clause enables borrowers to access additional financing without executing a new security instrument, provided the total loan amount does not exceed the agreed upon limit. Future advance clauses are commonly used in construction loans and lines of credit secured by real estate.
