In mid-December I was contacted by a real estate investor in Georgia that had recently acquired a property in Atlanta in a cash purchase. He had used cash to make a competitive offer on a property with some built in equity, and wanted to place a mortgage on the investment property.
This was a perfect candidate for our delayed financing mortgage product that allows real estate investors (or anyone) to do a cash out refinance on a recently (within 6 months) acquired property if the property was bought with cash. The best (8 comments)
In my original blog post about Delayed financing, I discussed the basics of this under-utilized and extremely beneficial mortgage exception that can be used extensively by cash buyers & investors to help with cash flow and to have the best of both worlds when it comes to the advantage of a cash offer, with the benefit of a low interest rate conventional mortgage.
The response has been tremendous, and made me realize that not many people know about this program, and even fewer are using it - comments like "my lender didn't (10 comments)
'Delayed financing' is an exception to traditional cash-out refinance guidelines for conventional loans. It is a cash-out transaction involving a property that was purchased in the past 6 months. For those that qualify for the delayed financing exception, cash may be taken out from equity of a recently purchased property to recoup a portion or all of the funds used to make the purchase. This is a tremendous program for buyers with the ability to buy a home without using a purchase mortgage.