A Revolving Line of Credit (RLOC). RLOC is not completely disbursed at closing so it can be requested, and approved, for each disbursement, but also re-disbursed up to the maximum outstanding loan amount from time to time. RLOC is more like a credit card where you can pay it down and have those fund available again in the future, if needed. Any interest accrued is based on the outstanding balance at that time.
We do want to point out this is a different concept than Non-Revolving Line of Credit (NRLOC). NRLOC is an option we have were funds are not completely disbursed at closing, but rather released as requested and approved, but once disbursed, they cannot be re-dispersed even if paid back. Both Revolving Line of Credit and Non-Revolving Line of Credit are interest only loans until the balloon payment at maturity of all outstanding principal.