Delayed Financing for Cash Purchases

Have you recently bought a home and paid for it in cash? Now, you might be looking to pull cash out for home improvements like building a pool or simply need the cash – that’s where delayed financing comes in.

Borrowers who purchased the property within the last 6 months are eligible for a cash-out refinance. This is calculated from the purchase date of the property to the disbursement date of the new mortgage loan. The original purchase must have been an arms-length transaction.

To qualify for this refinance, borrowers must meet certain eligibility requirements, including General Borrower Eligibility Requirements. The borrower(s) may have initially purchased the property as a natural person, through an eligible trust, or as part of an LLC or partnership with 100% ownership.

Documentation of the original purchase transaction is crucial, with a settlement statement confirming that no mortgage financing was used. Alternatively, a recorded trustee’s deed can be used to confirm the amount paid by the grantee to the trustee.

The new loan amount cannot exceed the documented amount of the borrower’s initial investment in purchasing the property, plus financing for closing costs, prepaid fees, and points on the new mortgage loan. This is subject to maximum LTV, CLTV, and HCLTV ratios based on the current appraised value.

Contact us for more info about delay financing.