Loan on a cash purchase other than a Refi?

3 Replies

Looking through some of the past posts on this question mine would be is there another way besides refinancing a cash buy? Lets just say a cash buy of 55K, home has a FMV of 95K and a tax appraisal of 118K. I would like to take a loan out for about 30-35K would a home equity line be the way to go besides refinancing?

Hi Chris,

Yes, after you purchase the property you could take out a HELOC however the bank may not offer that to you right away, you would want to check with whichever bank you would be applying for the HELOC through. If you are using your own money to purchase the property and you can verify the source of the funds you could do what's called "delayed financing" where you basically get the refinance loan as soon as you close. Again, you would want to talk to your lender about this before buying the property.

Is there a reason you don't want to do a refinance?


Eric Black

Thanks for the info. However the property has already been closed on and deeded so talking to the bank before buying is already out of the question. I am not looking to refi because I have two mortgages already would like to avoid a 3rd one and plus reading past posts on this similar topic people are saying I would have to wait 6-12 months before I can refi. I am not looking to wait that long because I dont intend on holding on to the one I just bought that long.  I am going to be selling the one I just bought with in a month I was looking to see what I can get out to put towards another one to have ready to go when I sell the first one.

Got it. Then a HELOC is probably your only option at this point.

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