I bought a multifamily property last October in cash using 50% from me and my dad lended me the other 50% on an interest free loan. Its a long story why that ended up happening but my plan was to do a delayed mortgage once I renovated and rented and pay back my dad with that and continue to purchase more properties. I just spoke with my mortgage broker who mentioned he didn't think I would be able to do delayed financing since this constitutes as a gift from my dad. I was wondering if anyone had any advice on this situation in terms of finding a specific lender who would be willing to lend to me in some form of a delayed mortgage (if this is even still possible). I am worried that im in a situation that the only option I have is to sell, get my money back plus a slight return, and then start the process over buying a new one.
Hi @Kevin Nolan, how many units is the property? I really only have familiarity with how the Fannie Mae "delayed financing exception" works with 1-4 units, not sure about 5+ that would be considered commercial. But if you're under 5 units … the DF rules require that the money for the initial purchase came from the person who is applying for the loan. One option might be having your dad on the loan as well, if he would agree to it.
You may also be interested in this post describing a pretty creative strategy to get a refinance in under 6months: https://www.biggerpockets.com/... Of course, there's also the option to wait 6months and do a regular cash out refinance if that would work for you.
It also wouldn't hurt to call more lenders - if you post where the property is, you might be able to get some advice on hear from local lenders.