Fannie Mae’s “Delayed Financing:” Pay CASH for your home today, then CASH-out tomorrow!

Fannie Mae’s “Delayed Financing:” Pay CASH for your home today, then CASH-out tomorrow!

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
  • Home-buyers 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.

Contact TMN today!


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