Get Your Cash Back with Delayed Financing

Did you just buy a home using cash, but you really wanted to get it financed? Good news, the Rebecca Foote Mortgage Team can help!

In this competitive market, many people are offering to pay the sellers cash for their house, to get their offer accepted. Typically, these funds come from a retirement or 401K account however, most don’t want to deplete their savings just to buy a new house.  That is why the Rebecca Foote Mortgage Team is ready to help you get some of that money back.

How it works

Our team recently had two clients, Alison and Jim, who purchased a home using funds from Jim’s retirement account so they could offer cash. They did this to make their offer more appealing to the sellers. Before they even signed their final purchase documents to own the home, the loan process had already been started to help Jim get some of his retirement money back. This type of mortgage is called delayed financing.

Delayed Financing works by using the equity of the home you just purchased through a cash-out-refinance. This is usually done right after you close on the home. Some mortgage loan officers advise their clients to wait six months before they do this. However, it Is actually better to do it sooner, so you are able to replenish the savings accounts you originally pulled money out of. These loans typically close within 30 days from the purchase of the property which allows you to replenish your money quickly.

Who can do it?

You can do delayed financing for primary residence, second homes, and residential investment properties. Of course, all other credit criteria for a conventional mortgage must also be met. In addition, all money used to purchase the property must be sourced no financing of any kind associated with purchasing the home. It is also important to note, that there cannot be a relationship between the buyer and the seller… so you can’t do delayed financing after purchasing your grandparents’ home with cash.

Find out more

If you have any questions or would like to see if delayed financing is right for you, please give our team a call or visit our website! As always thanks for watching and make sure you subscribe for more homebuying tips!