Cash Out Mortgage Financing for Cash Buyers

Mortgage and Lending

Cash Out Mortgage Financing for Sacramento Cash Buyers

Sacramento cash buyerMany Sacramento home buyers are taking advantage of the great buys available in the current market, paying cash for Owner and Non-Owner Occupied homes.  Until June 28, 2011, however, these buyers had to wait six months before they could get a mortgage on their purchased homes to recover some of their initial cash investment.

Now, no more waiting!

You can now get cash-out financing with no waiting period after a no-financing purchase transaction under the following parameters (no exceptions will be granted):

  • The new loan amount is not more than the actual documented amount of your initial investment in purchasing the property, plus the financing of closing costs, prepaid fees, and points (subject to the maximum loan to value guidelines for the transaction).
  • The purchase transaction was an arms-length transaction.
  • The purchase transaction HUD-1 confirms that no mortgage financing was used to obtain the subject property.
  • The preliminary title search or report confirms no liens on the subject property.
  • The source of funds for the purchase transaction can be documented (bank statements, personal loan documents, HELOC on another property). Any loans used as the source for the purchase transaction will be required to be repaid on the new HUD-1.

Even better:  this change also applies to owners of 5-10 properties, too!

Sacramento cash buyer ready to recover some of your investment!  Considering a no-financing purchase but don't want your cash tied up too long?  I can help you!


Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Deborah "Dee Dee" Garvin 07/01/2011 08:55 AM
Home Buying
California Sacramento County Elk Grove
Posts to Localism
Sacramento Real Estate
sacramento mortgage
sacramento investment properties
sacramento trustee sales
sacramento cash out financing

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Jon Quist
Tucson's BUYERS ONLY Realtor since 1996

Well, I admit I missed this announcement. I have a current cash buyer who may be interested in this. Thanks.

Jun 30, 2011 05:22 PM #1
Sonja Patterson
Keller Williams - BV - College Station, TX
Texas Monthly 5-Star Realtor Recipient for the Hou

Ed, I've never had a client do this...Would investors primarily be interested in doing this? Please educate me as to why a buyer would want to go this route...Thanks in advance!

Jun 30, 2011 05:24 PM #2
Ed Gillespie
Rocklin, CA

Glad to help, Jon!  Thanks for stopping by!

Jun 30, 2011 05:25 PM #3
Doug Bullwinkel
Envoy Mortgage - Roseville, CA
NMLS #281609

At last....a change from FMNA for the better.  This might generate some quick refi business for everyone.

Jun 30, 2011 05:27 PM #4
David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

Interesting, this could help close and sell more homes. Thanks for sharing

Jun 30, 2011 05:32 PM #5
Ed Gillespie
Rocklin, CA

Hi Sonja, there are occasions where the cash buyer may see another investment home he or she would like to buy.  A cash-out refinance might help accomplish this. In other cases the client might use the cash to put into another type of investment.

Doug, yes this might just give us LO's some refi business!

David, yes I also hope this gives you a boost in business!


Jun 30, 2011 05:59 PM #6
Deborah "Dee Dee" Garvin
C2 Financial - San Diego, CA
C2 Financial

Ed,  I missed this announcement myself!  These are exactly the same parameters from the "days of old".  Thanks for the update.

Jul 01, 2011 08:53 AM #7
David A. Weaver
Peoples Bank & Trust Co. - Scottsdale, AZ
24 years helping folks finance their dreams.

Hi Ed,  Thanks for the heads up.  I missed this one as well.  Checking to see if we are going to offer it.  This would be great for the Phoenix, AZ market with so many cash sales.  Have a great Fourth of July holiday, to one and all.

Jul 01, 2011 11:39 AM #8
Ed Gillespie
Rocklin, CA

Dee Dee and David--I'm encouraging agents to check in with past all cash clients to see if they might be interested in this.  Great news for us in the loan business, too!  Thanks for stopping by!

Jul 01, 2011 12:54 PM #9
Kathy Clulow
RE/MAX All-Stars Realty Inc. Brokerage - Uxbridge, ON
Trusted For Experience - Respected For Results

Ed - Being able to take cash out of a property for an investment in any thing is great ..... I believe in the use of "OPM" when it comes to investing ..... but not always the wisest thing to do ..... one needs to recognize that their ability to repay may be hindered by changes in personal circumstances as well as cash flow from investment properties suddenly drying up.

Jul 05, 2011 04:52 AM #10
Ed Gillespie
Rocklin, CA

Great observations, Kathy!  Best use of this would probably be to replenish assets but I certainly can see the wisdom, for some, of geting cash out to do a fix/flip or to get the tax benefits of mortgages on rentals.  Finance and invest carefully!  Thanks for stopping by!

Jul 05, 2011 06:10 AM #11
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