Delayed Refinance not an option?

Question

Hello BP community! I've learned so much from this site and appreciate all the camaraderie among members to help and support one another on this real estate investing journey. So here's my situation: I bought my first deal (SF home) earlier this month. I was able to get the deal because I paid cash for the home (I put down 50% of the cash and my mom loaned me the other 50%). I'd like to get the money back (so I can move on to my next investment) and planned to refinance quickly, but just learned that I either have to wait and do a conventional refi in six months or do a delayed refi. I called a local lender yesterday who said I don't qualify for the delayed refi because my mom loaned me half the money and she's not on the title. Although I have resigned to waiting 6 months to refi, I thought I would put this out to the BP community to see if anyone has any other creative ideas (I'm ready to put that cash into another deal!).  I have read every discussion on this topic on the BP forum but wanted to see what might work for my situation. Happy to provide additional details if needed! I also learned from the lender that now if you do a delayed refi that you can go on appraised value vs. the purchase price? Thanks for the suggestions!

Devin Gentry · Answer

@Harjeet Bhatti thanks for your reply! So, do I need to tell the bank the money was a loan from my mom versus a gift to qualify for delayed financing? The lender I went to asked me a bunch of questions but once I told them I was gifted the money and my mom not on the title, that's when they told me it wouldn't work. Maybe I should seek out a new lender!

Harjeet Bhatti · Answer

@Devin Gentry You can cash out under delayed financing even though there is personal loan. You can cash out 70% of appraisal value or purchase price whichever is lower.