If a loan is table funded, what can be inferred?

• A. The lender funds the loan directly to the borrower
• B. The borrower must make a large down payment
• C. The loan is funded by a third party
• D. The loan is funded simultaneously with the closing

Answer: (D)

When a loan is table funded, it indicates that the loan is funded simultaneously with the closing. This means that at the time of closing the mortgage transaction, the funds are made available to the borrower right away. In a table funding scenario, the lender and borrower finalize the loan details, and the lender provides the funds at the table—hence the term "table funded."

This process typically allows for a more streamlined closing because all parties involved can complete the transaction in one sitting. The immediacy of funding at closing helps ensure that the borrower can access the loan proceeds right away for purchasing the property or refinancing, adding convenience to the transaction.

In contrast, other choices suggest actions or scenarios that do not align with the concept of table funding. For example, the implication that a third party funds the loan (as suggested by another option) does not occur in table funding arrangements, where the lender disburses funds directly. Similarly, the requirement of a large down payment is not a defining characteristic of table funding, as down payment amounts can vary based on the terms of the loan rather than the funding method.