Funding Fee
The funding fees are listed below and are the funding amount needed to close the A – B leg of the double closing plus a $50 wire fee. Lender reserves the right to change this fee if there are Special Circumstances.
Less than $500,000 = 1 point + a $50 wire fee with a $300 minimum
$500,001 to $700,000 = 1.5 points + a $50 wire fee
Greater than $700,001 = 2 points + a $50 wire fee
Amounts in excess of $900,000 call for availability and rate (+ a $50 wire fee).
Special Circumstances and Additional Terms and Conditions
Special circumstances are defined as any situation or requirement by the borrower or the seller that are outside the parameters of the usual transactional funding. These parameters can be, but are not limited to, borrowers unwillingness to sign any required lender documents, last-minute change of funding amount, end-buyer not sending his purchase funds timely, end-buyer not willing to sign any necessary documents for the closing, any business or personal relationship between the investor buyer and the end-buyer (“C”) or any situation or other reason deemed unusual by the transactional funding lender.
Note – no additional fees are required for Heritage Realty Services, Inc. unless the transaction does not close timely. If that is the case, the borrower may be required to sign additional documents to protect the lender’s funds including but not limited to, a quitclaim deed, mortgage and note, or any other document as required by the lender on the subject property.
Closing Agents may charge wire fees, doc prep or other fees that are not part of our Transactional Funding Fee – check with the closing agent before closing to see if any of these fees apply.
**Transactional funds from the end-buyer (“C”) can only be done by Domestic Wires – no checks, cashier’s checks, money orders, cash or other paper payment methods are allowed. HRS at all times has the right to stop the funding of a transaction without an explanation to the borrower.
Funds from the “C” buyer must have been wired into the closing agent’s escrow from a Domestic Bank in US Dollars or must have been cleared in the closing agent’s escrow account prior to Transactional Funds being wired. Funding must be available at the time of the closing so it is the responsibility of the “B” investor/buyer to reserve the funds with us for his closing.
If the closing does not take place for any reason, the investor/buyer may be charged $100. If funds are required to be kept in the closing agent’s escrow account because the property didn’t close timely, the investor/buyer may be charged the greater of $100/diem or 20% of the base funding fee/diem until the transaction closes.
All documentation for the closing, including the Transactional Funding Closing Requirements must be in the hands of the closing agent and Heritage Realty Services, Inc. at least 24 hours prior to the funding of the transaction.
The Transactional Funding Closing Requirements will be sent to the investor and closing agent only after the investor has been approved for the transaction. In the event that the Transactional Funding is committed to by HRS, but HRS does not provide funds timely for a closing, HRS or its affiliates are not responsible for any economic loss to the Investor/Buyer if the transaction does not close timely because of the fault of HRS, the investor/buyer or the end-buyer.
Check for any additional Terms and Conditions that may be applicable when you apply for funding, above rates are effective 7/1/2019.