Delayed FinancingWondering 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.
- 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.
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.
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