Delayed Financing- What if the bank says....

8 Replies

Ok BP I know I've been talking about this for some time but as I think through some things they tend to pop up. So I would really like to pull of the delayed financing when the opportunity presents itself with a local credit union here in California who previously handled a refi for me some time ago (they do 90% LTV on a HELOC) but when I asked they have never heard about it. Can I 'demand' that they do this? Is there someone I should speak to specifically so that there will be no hiccups when I'm ready? Thanks BP!

Jorge

@Jorge Ruiz , are you saying you owed, after refinancing, 90% of their appraisal of its value? How's it been performing for you? Positive returns only, with NO outlay needed from you each year since?

The short answer is: no, you cannot 'demand' anything from them that they haven't promised in writing.

"Normal" delayed financing can get you a maximum of ALL of your cash purchase price (and closing costs) back again, but only if that purchase price is no more than 70-75% of THEIR appraisal (whatever their Rules indicate). My 2c...

@Brent Coombs I understand that unless it’s in writing I can’t hold the bank to anything. What I’m saying is if they don’t know what delayed financing is can I ‘make’ them learn what it is and ‘make’ them give me a mortgage?

Originally posted by @Jorge Ruiz :

Brent Coombs I understand that unless it’s in writing I can’t hold the bank to anything. What I’m saying is if they don’t know what delayed financing is can I ‘make’ them learn what it is and ‘make’ them give me a mortgage?

Yeah, but, forget any notion of trying to get 90% LTV. Not gonna happen. No way.

It's 70-75% LTV (whichever THEY choose), or, 100% of your purchase + closing cost. But get this: it's whichever is LOWER!

The 90% LTV HELOC will be on my primary residence in order to pull off delayed financing on future investment properties. I look back and read and I wasn't clear. Thanks for your help @Brent Coombs

Jorge

Originally posted by @Jorge Ruiz :

The 90% LTV HELOC will be on my primary residence in order to pull off delayed financing on future investment properties. I look back and read and I wasn't clear. Thanks for your help @Brent Coombs

Jorge

Aah. In that case, it's not the "delayed financing" Lenders you have to worry about, because that's a completely different issue to how much of a percentage a Lender would give you as a HELOC against your own home, if you owe nothing.

BUT, my earlier point still holds true: You won't* find a 90% HELOC before the purchase is "seasoned" (6 months +).

[* Even if you CAN find a reckless Lender, do you REALLY want to owe 90% on your home's actual value?]

Jorge. 

I haven't heard of someone "demanding" that this be done. But I am certain that you could ask them and then show them the delayed financing code so that they can see if that is something they would be interested in doing. 

Originally posted by @Jorge Ruiz :

Ok BP I know I've been talking about this for some time but as I think through some things they tend to pop up. So I would really like to pull of the delayed financing when the opportunity presents itself with a local credit union here in California who previously handled a refi for me some time ago (they do 90% LTV on a HELOC) but when I asked they have never heard about it. Can I 'demand' that they do this? Is there someone I should speak to specifically so that there will be no hiccups when I'm ready? Thanks BP!

Jorge

 No, you can't "demand" this. Not every lender is required to offer every loan program out there. And  if you're fighting with your lender on this so early, what are the odds that it actually closes anyways? Close to zero. They don't even know how to originate it, how could they close it? 

@Chris Mason thank you. That’s more along the lines of what I was looking for.

Jorge

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