Delayed Financing

Wondering how you can make a competitive offer in today's seller market? Delayed Financing has become increasingly more popular among buyers and is a great tool for those who have the resources to take advantage of it.

What is Delayed Financing?

Delayed Financing refers to obtaining a mortgage after purchasing a home with cash. Buyers can quickly access equity in their home and receive a large portion of their cash back through this variation of a cash-out refinance. Delayed Financing must be completed within 6-months of purchase, unlike typical cash-out refinances, which require a 6-month waiting period.

What are the key benefits?
  • Make your offer more attractive to sellers, gain negotiating power, and ensure a quicker closing process.
  • Enjoy the flexibility of making payments over time while building credit for the future.
  • Receive fast access to delayed financing with waiting periods waived.
  • Available for both conventional and jumbo loan options.
  • Utilize the cash received for other purposes, such as, investments, home renovations, paying off high-interest debt or purchasing a second home.
What are the potential drawbacks?
  • Requires a large amount of cash upfront which may not be fully returned. Delayed Financing requires a certain amount of equity to remain in the home.
  • Requires additional documentation to qualify.
How do I qualify?

Delayed Financing requires an application and approval process and is not guaranteed. The following are some requirements to qualify:
  • Must prove no relation to, or close relationship with, the seller - commonly referred to as an arms-length transaction.
  • Must provide proof that the home sale occurred.
  • Must provide a clear title search with no liens.
  • Requires a new appraisal to be completed.
  • Employment, income, and credit verification apply as well. 
Contact your trusted local lender with any questions or to determine if Delayed Financing would be the right mortgage solution for you.

 
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