Recently Closed - Delayed Financing in Georgia
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 part of delayed financing is a borrower can borrow an amount up to the total acquisition cost of the property (purchase price plus closing costs/taxes/etc) PLUS the closing costs on the new loan, as long as there's adequate equity. This is a great loan for investors because they can acquire properties quickly using cash, and regain their liquidity immediately, without the standard 6 month wait that standard conventional guidelines call for.
While used less for primary residences and second homes, delayed financing can also be used for those transactions and is a great way for cash-rich buyers to make competitive offers and then obtain a mortgage.
We lucked out and had a wonderful client that had his finances in line and was able to submit all necessary loan documents quickly, and we were able to help our client from application to check-in-hand in about 3 weeks (with Christmas and New Years in between!).
I was very grateful to the ActiveRain platform for several reasons working on this transaction - for one, my client was incredible to work with and benefitted nicely from our mortgage loan, and he found me on a certain blogging website (can you guess which one?). Also, Atlanta's own Lynn B. Friedman was able to direct me to a wonderful Atlanta real estate attorney, and Doug Dean of Shafritz & Dean did a great job in helping us get to the closing table quickly and with a happy borrower.
Here's what our borrower had to say:
"Most lenders and brokers can do the cookie cutter loans, but John understands the wrinkles in the Fannie and Freddie guidelines and helped me get an investment loan done under the "delayed financing exception."
Equally importantly, John got it done quickly and was incredibly responsive to email, which is my preferred communication method."
Want more information on Delayed Financing? Check out a more in depth post about delayed financing here. The JM Loans team is licensed to help with all of your mortgage needs in CA, CO, DE, FL, GA, NJ, PA, and VA (and we're coming soon to MD, TN, and TX)