Delayed Financing Loan Programs
According to the National Association of REALTORS, nearly 30% of home re-sales are purchased using cash. Some of these buyers are wealthy while others are retirees who have paid off their mortgages and wish to use the equity from the old home to buy the new one.
Through a special Fannie Mae government program known as Delayed Financing, home buyers and real estate investors are no longer required to wait 6 months post-closing to refinance a home bought with cash. Buyers can now refinance their home within 24 hours of its purchase, and still have access to great rates.
Fannie Mae first introduced its Delayed Financing program in 2011. This program was initially meant to help sell homes which would otherwise go un-purchased (mainly due to inhabitability issues such as lack of running water, broken windows, or lead-based paint among others). However, this program also works well for any homes that are issue-free and bought with cash straight out.
Paying cash for a home generally means less negotiating, a better price, and no mortgage payments. However, the downside to the cash purchase is that your money is tied up in the home, making it unavailable for living expenses, vacations, or any other purposes.
With Delayed Financing, a buyer can purchase a home with cash, perform the home repairs necessary to make the home "livable,” and then do a refinance (cash-out) to recover the assets used to make the purchase if they select that option. They can then live in the “upgraded” home or do whatever they choose with it.
Did you pay cash for your home for a quick closing? If it is within 6 months of the purchase, it’s not too late to finance your home with our Delayed Financing program!
Delayed Financing program’s key points:
1. Leverage your cash assets while gaining valuable tax advantages
2. Up to 85% loan-to-value for your primary residence
3. Up to 75% loan-to-value for your second home or investment property
4. Credit scores as low as 620
5. Appraised value of the home is used to determine the loan amount, provided the new loan amount does not exceed the actual amount of your initial investment, plus closing costs, prepaid fees, and points.
We can help you get the delayed financing you need for your current home or any other property. Contact Resolution Funding today for more information or simply complete our secure online loan application to get started and see what you’re pre-qualified for!