Rental Property Investor · Sacramento, CA · Member since 2016 · 93 posts · 85 votes
Hi guys, I'm going to be working on my second deal using a HELOC + cash to buy in full cash. Would I still qualify for Delayed Financing Exemption? The reason I'm asking is because my strategy is BRRR and I want to make sure I will have access to the cash fairly quickly after the purchase. Specifically I'm unclear on the guideline below and what is meant by "no financing was obtained";
DFE Guidelines:
1.) Cash out refinances where the subject property was purchased within 6 months (measured from HUD-1 date to the disbursement date of the new mortgage) when no financing was obtained for the purchase are allowed under the following parameters:
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
9y
@Edit B. buying a home with a HELOC or LOC does qualify for the Delayed Financing Exemption. If the bank does not have any overlays attached to this scenario you should be good to refinance. Good luck!