The key requirements to qualify for transactional funding are:
TRANSACTIONAL loans must be, business-purposed, "non-owner occupied" investor loans.
There must be a valid, active contract to purchase the subject property by the borrower.
There must be a valid, active contract to sell the subject property by the borrower.
The end purchaser total funds must be deposited into escrow for the B-C transaction, and all documents for the B-C transaction must be in order before any funding would occur for the A-B transaction.
The purchase and subsequent sale of the subject property must be scheduled and arranged as a back-to-back closing.
The Closing agent must be designated and/or approved by AFD
They should be an approved title officer, escrow officer or attorney that must be a licensed, bonded and an insured entity.
We also offer Extended Transactional Funding.
SO WHAT IS EXTENDED TRANSACTIONAL FUNDING?
As the name suggest, it works exactly as does transactional funding, except that the B-C closing need not occur right away or within 24 hours, but within a period of up to 180 days after the B-buyer (investor) first acquires the property.
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