If you have recently purcahsed a house and paid all cash at closing you can still get your equity back out. Fannie Maes Delayed Financing program will allow you to pull some of your initial investment out of the home you just purchased in cash.
In the past you needed to wait 1yr to qualify for a cash out refinance after a all cash purchase. The Delayed Financing will give you access to some of your equity right away. There is no waiting period for eligible applications under this program. Below are some of the highlights and key features of this program.
The Delayed Financing Rule qualifying standards are basic :
- The new mortgage may not exceed the documented property purchase price
- The original purchase must have been arms-length
- The original HUD-1 must document that the sale occurred
- The original HUD-1 must confirm that no financing was used
- A title search must show that no liens exist on the property
- Funds used for original purchase must be documented
- MUST apply for financing within 6mos of your intial aquisition
Delayed Financing Rule mortgages are subject to a 70% loan-to-value limit except for investors with more than 4 properties financed.
For investors with more than 4 properties financed, the Delayed Financing is still available although you are limited to 65% loan to value. Additional Fannie Mae 5-10 financed property restrictions will apply.
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