Delayed Financing: Conventional Loan

Benefits:

Delayed financing allows buyers to use cash, and in some cases stocks, to buy a house and obtain a mortgage right after the home is purchased.

• Cash makes for a more attractive offer, which can make the difference in a hot market
• Buyers can purchase non livable properties, renovate and in less then 6 months recover their investment
• Cash can expedite the process
• No six-month waiting period, unlike a cash-out refinance
• Recover your personal cash investment right away.
• Allows buyers to bundle closing costs and financing costs into the cash-out refinance.

Loan Requirements

• 620 Minimum Credit Score.
• Loan amounts up to $647,200.00
• Fixed rates and term
• No prepayment penalties to pay extra or early
• Purchase transaction of primary residence , second home & investments
• Citizen, permanent resident or Work Visas are allowed
• Full documentation using tax returns and w2’s or 1099’s
• Escrows can be waived from the monthly payments
• Home must be livable
• Debt to income ratios, up to 47%

Recently renovated home, new construction or older home is allowed. Single family residence and town home as well Some of the other qualifications you have to meet for delayed financing include:

• The purchase of the property has to be an arms-length transaction.
• The buyer must use cash to buy the property.
• The buyer must provide the source of the funds.
• If the cash used to make the initial purchase came from a HELOC ( Home Equity Loan) on a different home, the proceeds from the delayed finance mortgage must be used to pay off that Loan.

The new loan amount cannot exceed the purchase price