Can I pay with a mortgage instead of cash?

7 Replies

Is it worth looking for deals hoping the seller is willing to wait 45-90 days for the bank to close or should I make sure I have enough cash to pay for the entire purchase before I make offers?

I'm under the impression that if I don't have all cash to offer for an investment property in the $30k - 100k purchase-price range, I will have a very difficult time finding a seller who would want to sell to me.  It seems like an investor market like Baltimore, where I am, has ample investors who have cash ready to offer for properties in that price range.  


Make the offers! If you are doing full price, and cash investors are low balling them they will take your offer. Just make offers, if you do not get the property move on and find another one. Keep making offers until you find someone that will take your offer! So, what they say no one take a cash offer means it was not meant for you! You will be surprised what will happen in this crazy world of real estate!

@Daniel Alfandre if you are working with a lender that says it will take you longer than 45 days to close with a FHA or conventional loan, you need to find a new lender. If you close in 45 days with a normal owner-occupied loans, you should be able to make competitive bids. Also, since you are working with a lower price point of $30k-$100k properties, if you could come up with 20%-25% down for a conventional loan, that will be a more appealing financing situation to the seller than FHA 3.5% down. Also, maybe start looking for properties that cash investors aren't looking for. Look for something that is just habitable enough to live in but not something super dumpy that would be appealing to cash investors where they could get a steep discount. Also, finding something off-market could be a good option where there might be less competition. Maybe try some direct mail?

I completely agree with @Joseph A Gonzales , just keep submitting offers. It's all a numbers game. If you don't currently have the funds ready to offer all cash, don't wait. Just offer according to your financial capabilities. You may be surprised to find out that the cash offers don't always win. Just be aggressive and creative when offering and just keep submitting offers until you get accepted. Best of luck!

don't worry, make offers and put property under contract.... once it is under contract and you have a deal, the financing is the easiest part to figure out.