Delayed financing POF

6 Replies

When doing delayed financing on a cash purchase will the lender require the earnest money deposit 

be stated explicitly on the wire transfer note/receipt that its a emd for the property being financed?


You seemed to be confused...

“Delayed financing” is when you seek to finance the property sometime after you have already bought the property with Cash.

Originally posted by @Wayne Brooks :

You seemed to be confused...

“Delayed financing” is when you seek to finance the property sometime after you have already bought the property with Cash.

 My emd wire did not state a reason why It was sent to the receiving party ,the lender could argue that the wire was used for different purposes other then buying the house with cash.

Originally posted by @Joe Bruck :
Originally posted by @Wayne Brooks:

You seemed to be confused...

“Delayed financing” is when you seek to finance the property sometime after you have already bought the property with Cash.

 My emd wire did not state a reason why It was sent to the receiving party ,the lender could argue that the wire was used for different purposes other then buying the house with cash.

In the case of cash purchase, "earnest money deposit" should have said "payment in full" instead, right?...

Originally posted by @Brent Coombs :
Originally posted by @Joe Bruck:
Originally posted by @Wayne Brooks:

You seemed to be confused...

“Delayed financing” is when you seek to finance the property sometime after you have already bought the property with Cash.

 My emd wire did not state a reason why It was sent to the receiving party ,the lender could argue that the wire was used for different purposes other then buying the house with cash.

In the case of cash purchase, "earnest money deposit" should have said "payment in full" instead, right?...

I would assume you don't need 'one bulk payment at settlement'    the main point is to prove to the lender that the entire sale price    On the hud-1 statement was paid In full using cash only at the time of settlement...  it can be multiple cash payments... so my question is does every payment towards the property need to be specifically addressed that its for the partial payment or emd... or else your doomed?    

   

@Joe Bruck You have to provide  all the cash transaction proof  by paper trail of  2 month bank statements showing money was seasoned or if used personal loan  that paper trail  whether it was as EM check or final payment .  Generally lender do not ask for EM check proof unless this was huge payment of total purchase price.