Fannie Mae’s “Delayed Financing:” Pay CASH for your home today, then CASH-out tomorrow!
Posted by Scott Edgin at September 5th, 2017
Did you pay CASH for your last home? Delayed Financing may be an option for you.
Delayed Financing is a cash-out refinance option that can begin as early as one day after paying cash for a Primary, Second Home, or Investment property? In competitive markets, listed homes may only be available for a few days—maybe only hours. Buyers need to make solid offers and deliver on agreed terms. Being a cash buyer allows you to do just this.
The Delayed Financing option is a Fannie Mae rule and has been available since 2011. Before delayed financing, cash buyers, homeowners, and real estate investors had to wait 6 months before beginning the cash-out refinance process. Today, the delayed financing option can begin immediately, and The Mortgage Network can help you close on these transactions in as little as 30 days from the date of purchase.
Delayed Financing Advantages:
- Sellers favor a cash offer over just about any other offer
- Offers from cash buyers are more often accepted than offers requiring traditional financing
- Stronger negotiating power
- Creates an opportunity to draw upon financial assets, such as retirement and savings funds, with the option to quickly restore these assets through a delayed financing cash-out refinance in as little as 30 days of closing on the original purchase
Delayed financing is available up to 6 months from the date of the original purchase, after which the traditional conventional and home equity refinancing options become available. For many homeowners and real estate investors, delayed financing provides the best of a great real estate investment—the advantages of getting the property you really want, while being able to finance it over time.
Guidelines when considering delayed financing:
- A title search must show no liens exist on the property
- Homebuyers must prove where all cash came from to purchase the property
- The new mortgage may not exceed the documented property purchase price
- The original purchase must have been arms-length
Keep in mind that delayed financing isn’t going to work for all home-buyers, but under the right circumstances, it might be the way to go. If you are interested in refinancing, I would be happy to discuss all your options, and come up with the best solution for you.
Office Location: Colorado Springs Office
Phone Number: 303-394-2121
Scott has spent the last 15 and a half years with GE Capital, Genworth Mortgage Insurance and Academy Mortgage. Originally hired in Chicago, Illinois, Scott served in a variety of leadership positions, which provided many opportunities for growth throughout the country including in: Illinois, Utah, North Carolina, and most recently, Colorado. If there is one thing Scott would share, it would be to jump in with both feet and give it your best—don’t sit on the sidelines and wonder ‘what if?’Living by this standard, Scott has made it a priority to be an active participant in each of these local mortgage lending communities, finding unique ways to bring value to the accounts he’s partnered with, and truly valuing relationships—all of which have generated great success. In December 2014, Scott was the first-ever vendor partner awarded the Community Service award, by the Colorado Association of Mortgage Professionals, for his outstanding leadership with Habitat for Humanity.
Scott and his wife, Shelly, reside in Colorado Springs, Colorado with their four children. He enjoys serving in the community as a basketball and baseball coach, Eagle Scout mentor, and volunteer youth leader for his church.
He holds a bachelor’s degree from Brigham Young University and graduated summa cum laude with his MBA from Westminster College. He strives to live his life by the following principles: (1) give others the credit for your success—you didn’t accomplish it alone, (2) always look for ways to serve and lift those around you, and (3) let the “scoreboard” speak for itself.
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