Delayed Financing After Paying Cash for a Home
Delayed financing allows buyers who paid cash for a property to refinance shortly after purchase and recover a portion of the funds used to buy the home — without waiting for traditional seasoning requirements.
This option is often used in competitive markets, such as the greater Seattle area, where cash offers are common.
When Delayed Financing Makes Sense
Delayed financing may be a good fit if you:
- Bought a home with cash
- Want to restore liquidity
- Prefer not to wait (typically 12 months) for a cash-out refinance
- Planned financing as part of your purchase strategy
Key Features of Delayed Financing
- Loan amount is typically limited to the purchase price
- Requires documentation of the cash purchase
- Appraisal is usually required
- Timing and rules vary by loan program. Typically, you have six months after closing on the purchase that you need to close on the mortgage by. This means that you should probably start the process no later than 4 months after closing on your new home.
Planning Matters
Delayed financing works best when considered before making a cash offer. Advance planning can help ensure eligibility and smoother execution.
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