Dry funding
A closing where papers get signed first, and funding follows a few days later. Used in states like Washington, Oregon, and California. Ownership doesn't transfer until funding.
Every term like this one lights up in the step you're on.
Free to set up. No credit card.Part 1 of 4
Why a seller cares
In a dry-funding state you sign one day and the money arrives later. Handing over keys at the signing is early, and the sale is not done until the funds land and the deed records.
Part 2 of 4
A simple example
In Washington you sign on Tuesday. The lender funds Thursday, the deed records Thursday afternoon, and your proceeds arrive Friday.
| The day | What has happened |
|---|---|
| Tuesday, signing | Documents signed; nothing has changed hands |
| Thursday, funding and recording | The sale closes; the home is the buyer's |
| Friday, disbursement | Your proceeds arrive |
Signing and closing are different days. Possession usually follows the second one.
Part 3 of 4
What people get wrong
That signing day is closing day. In a dry-funding state it can be two or three days earlier, and keys usually wait for the funds.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
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