Rental Property Investor · Cherry Hill, NJ · Member since 2017 · 59 posts · 14 votes
Hello All,
I was just wondering. About a few years ago, I initially heard about Delayed Financing through Fannie Mae. It seemed like an awesome product. Recently, I'm assuming, since the pandemic these types of products have become less popular with banks since there is a lot of scared money out there that agencies are fearful towards lending out. Is anyone familiar with Delayed Financing and do you still use it? I've spoken with a few loan officers and they have advised me that if the loan I'm requesting is below 100K don't waste anyone's time because banks aren't interested in small loans. Another thing was that even if you get approved for delayed financing you wont be able to get your money back for 6 months!! That kind of defeats the purpose of using Delayed Financing doesn't it? There are a few properties I would like to acquire that are roughly 60 to 70k a piece. I want them as rental properties so I need to mortgage them. Do private money lenders do mortgages instead of just flips lately due to the pandemic? Any suggestions? I'm in the New Jersey area...
That lender is smokin something. I personally know people who are doing sub 100k loans with no issues. I think you just need to really explore some other options and start calling up every lender in your area. Delayed financing is usually pretty quick/immediate. The 6 mo seasoning is usually if you are trying to do a cash out refi on your equity thats been built up which is not exactly what delayed financing is classified as. Start calling up lenders and don't listen any one vendors opinion before you talk to at least 5-10 others.
Investor · Washington, DC · Member since 2017 · 428 posts · 205 votes
6y
@Vernell D Watson hey Vernell, delayed financing is not that complicated.. it’s just getting a mortgage on a property you purchased in cash/without a mortgage prior to the 6 month standard seasoning period required for a conventional cash out Refi. Youll generally get better terms on a conventional Fannie/Freddie loan than private loans; however, you do get capped on the number of financed properties you can have before you’ll have to look for alternate financing but if this is your first property I wouldn’t worry about that at this point. I’m not sure why those LOs were saying that unless they are A) inexperienced, B) don’t know their loan guidelines, or C) don’t want the business because they think the loan size is too small