Delay Refi Cash Out on propery purchased with cash

Delay Refi Cash Out on propery purchased with cash

Member since 2019 · 17 posts · 2 votes

Biggerpockets family. I just closed on a sfh two days ago. I purchased the property with cash, no loans from any lenders. I wanted to cash out efi (delay refi). I know that I can cash out refi right away (since it was a cash purchase) and cash out on one of the two: the purchase price and closing cost OR 75% of arv, whichever is lower. My question is can I use any bank to apply for a delay cash refi on my recent purchase or is there only specific banks that do this kind of refi?

Thanks!

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  • Lender · Cleveland, OH · Member since 2011 · 587 posts · 435 votes
    6y

    @Keith Jefferson Seems like most lenders are on board with delayed financing.  I would simply recommend asking the loan officer if they allow delayed financing.  If the loan officer doesn't seem confident with their answer then look elsewhere.  Shouldn't be too difficult to find.  

  • Nick MacklinPro Member
    Real Estate Agent · Oak Harbor, WA · Member since 2016 · 129 posts · 38 votes
    6y

    Your situation seems pretty straight forward (no rehab on settlement statement) so the delayed finance is fairly easy and I think most lenders will be comfortable with it.  Where most people run into issues is when they account for rehabs on the settlement statement and lenders don't know what to do (despite saying they know exactly what's going on).  It's been my experience that when you get to underwriting they err on the side of caution and don't fund everything the Fannie Mae guidelines allow.

  • Lender · Boston, MA · Member since 2019 · 417 posts · 150 votes
    6y

    @Keith Jefferson Does the property need rehab? Also, what is your plan, flip property or hold long term?

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