Advice for Delayed Financing

8 Replies

I'm having a hard time finding a residential lender who can do delayed financing on investment properties. I recently closed with all cash for two fully occupied 4plexes in Columbus OH. Does anyone have any advice on how to find delayed financing lenders?

So far, I have one lender who is willing to do 5.125% at 30-year fixed, 30% down, 2 discount points. I have another lender who is willing to do 4.9% at 30-year fixed, 50% down, no discount points. How would you evaluate these two options?

@Emily Huo 70% ltv of appraisal value or purchase price which is ever is less  you can cash out from your property under delayed financing exception. 

@Emily H.

Why not do a HELOC? With some lenders you may find more favorable LTV's. I personally use PenFed. Give them a call about your situation.

@Emily H. , you realize that the "30% down" does not apply to you, right? (Because, you already own it outright). Depending on how good a deal you did, Harjeet is correct: that 70% of their valuation could get you all your outlay back in your pocket, enabling a BRRRR Repeat!

ie. It's "70% ltv of appraisal value, or 100% purchase price, which is ever is less"! Good luck...

Originally posted by @Brent Coombs :

@Emily H. , you realize that the "30% down" does not apply to you, right? (Because, you already own it outright). Depending on how good a deal you did, Harjeet is correct: that 70% of their valuation could get you all your outlay back in your pocket, enabling a BRRRR Repeat!

ie. It's "70% ltv of appraisal value, or 100% purchase price, which is ever is less"! Good luck...

 Most banks will not do this without seasoning.  So I don't know how delayed we are talking here, but most regional up to big banks require 1-2 years seasoning, you could go to Visio or LimaOne for 1 to 6 month seasoning, but you're going to pay higher interest rates.

Originally posted by @Emily H. :

I'm having a hard time finding a residential lender who can do delayed financing on investment properties. I recently closed with all cash for two fully occupied 4plexes in Columbus OH. Does anyone have any advice on how to find delayed financing lenders?

So far, I have one lender who is willing to do 5.125% at 30-year fixed, 30% down, 2 discount points. I have another lender who is willing to do 4.9% at 30-year fixed, 50% down, no discount points. How would you evaluate these two options?

You should easily be able to find a bank willing to do 75% LTC up until the seasoning period, then you can refi at 75% LTV, and some banks will forfeit appraisal for BPO if it within a certain time frame.

Correct, When I say 30% down, I mean that the are letting me get 70% of the appraisal values since technically I already own the properties. I only closed on the properties this month, so yes I've been finding that most lenders won't do this without seasoning.

Originally posted by @Emily H. :

I'm having a hard time finding a residential lender who can do delayed financing on investment properties. I recently closed with all cash for two fully occupied 4plexes in Columbus OH. Does anyone have any advice on how to find delayed financing lenders?

So far, I have one lender who is willing to do 5.125% at 30-year fixed, 30% down, 2 discount points. I have another lender who is willing to do 4.9% at 30-year fixed, 50% down, no discount points. How would you evaluate these two options?

 Hi Emily, call the office or text and we will get you info ASAP. 

Originally posted by @Emily H. :

Correct, When I say 30% down, I mean that the are letting me get 70% of the appraisal values since technically I already own the properties. I only closed on the properties this month, so yes I've been finding that most lenders won't do this without seasoning.

Despite what others (and even Lenders) have said about seasoning, the "Delayed Financing Exception" specifically allows financing within 6 months of purchase (no mention of later!)*

* [Source: The official Fannie Mae website. The first relevant sentence begins: "Borrowers who purchased the subject property within the past six months (measured from the date on which the property was purchased to the disbursement date of the new mortgage loan) are eligible for a cash-out refinance if all of the following requirements are met" (emphasis added)]...

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