Following are some of the more common questions sellers have regarding an escrow cash advance:
Why is an escrow cash advance better or different than other options? -- As compared to a credit-based source of funds such as an equity line of credit, credit card advances, a personal loan or other home loans such as a second mortgage, an escrow cash advance does not require a credit check, doesn't show up on the credit reports as a monthly payment obligation, is not part of your debt to income ratio and thus does not affect your ability to qualify for other credit applications such as home loans, car loans or personal lines of credit.
How long does the approval and funding process take? -- Funding can be in place within one to two business days, or possibly even the same day if the application is complete and all requested documentation is provided.
Does it require good credit? -- Although we need to verify the identity of each of the owners of the property, there is no need to have any particular credit score in order to qualify.
Is there any up front or out-of-pocket payment required? -- No, there are no upfront or out of pocket costs involved.
Will an advance affect my credit score or be on my credit report? -- No, since we work with home equity there is no credit or debt being issued and no need to report it.
How much does it cost? -- The cost of the advance is 10% of the advance amount for the first 30 days and 4% for each additional month. Our return is not paid out of pocket by you – they are paid for at the sale or refinance of the house.
What happens if the buyer falls through? -- During the first four months, you can just continue to focus on finding a new buyer. Thereafter, you can choose to keep us as a limited investor by paying a small monthly extension fee or you can choose to have us become a longer term investor.