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Table Funding: A Comprehensive Guide to Its Legal Definition
Definition & Meaning
Table funding refers to a financial arrangement where a loan is provided through a simultaneous advance of funds and an assignment of the loan to the lender. In simpler terms, it means that the money for a loan is made available at the same time the loan is officially transferred to the person or entity providing the funds. This process is often used in real estate transactions and helps streamline the funding process for borrowers.
Table of content
Legal Use & context
Table funding is primarily used in the context of real estate financing and mortgage lending. It is relevant in various legal practices, particularly in property law and financial regulations. This term often involves legal documents and agreements that users can manage with the right tools, such as templates provided by US Legal Forms. Understanding table funding is essential for anyone involved in real estate transactions or lending practices.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A homebuyer secures a mortgage from a lender who provides the funds directly to the seller at the closing of the sale. This is a typical instance of table funding.
Example 2: A real estate investor obtains financing from a private lender who advances the funds to purchase a property, and the loan is assigned to the lender at the same time. (hypothetical example)
State-by-state differences
State
Table Funding Rules
California
Table funding is commonly used and regulated under state lending laws.
Texas
Specific regulations apply to table funding in real estate transactions.
Florida
Table funding is accepted, but lenders must comply with state disclosure requirements.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Difference
Table Funding
A loan funded by an advance of funds and an assignment of the loan.
Involves simultaneous funding and assignment.
Hard Money Loan
A short-term loan secured by real estate.
Typically involves higher interest rates and is not always assigned.
Conventional Loan
A mortgage not insured by the government.
Does not involve table funding; follows standard lending practices.
Common misunderstandings
What to do if this term applies to you
If you are involved in a real estate transaction or seeking financing, consider the following steps:
Review your loan agreement to understand the terms of table funding.
Consult with a real estate attorney or financial advisor if you have questions about the process.
Explore US Legal Forms for templates that can help you manage the necessary documentation.
If your situation is complex, seek professional legal assistance to ensure compliance with local laws.
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