Escrow Officer · Denver, CO · Member since 2016 · 64 posts · 27 votes
I believe this to be true with Fannie/Freddie loans however I also think there may be a loop hole. I know that you don't need to wait the 6 months with a portfolio lender but curious on a conventional Fannie or Freddie loan.
You can use the "Delayed Financing Exception" which is a fannie/freddie product that any typical lender can use. The only drawback is that you can only get out the lower of 70% LTV or the purchase price. So even if you get a killer deal, you will only be able to pull out, at most, your purchase price. I've done these in 30 days after initial closing, and then refinanced again after a year. Your lender will need to source your funds for the cash purchase and will need a copy of your final HUD-1 statement.