Delayed financing is for Borrowers who purchased a property for CASH within the past six months.
Delayed financing works great for those buyers that bought a house for Cash due to an auction, etc.
These buyers are then eligible for a cash-out refinance if all of the following requirements are met…
1) The new loan amount is not more than the actual documented amount of the borrower’s initial investment in purchasing the property, plus the financing of closing costs, prepaids, and points.
2) The purchase transaction was an arms-length transaction.
3) The purchase transaction is documented by the HUD-1, which confirms that no mortgage financing was used to obtain the subject property.
4) The source of funds for the purchase transaction can be documented (bank statements, personal loan documents, HELOC on another property), sourced and seasoned for two months. Any loans used as the source for the purchase transaction will be required to be repaid on the new HUD-1.
5) The “as is” appraised value is used to determine Loan To Value Ratio.
On a personal note…
I wanted to show you a portrait I just finished for one of my sons. Check it out…
That’s it for today!
Have a good day! …and thanks for reading.
Brett
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