Delayed Financing Question

[Nathan Goff]

Hello comrades,

I've heard about delayed financing the other day and the way it was described to me sounds like it could be valuable. From what I know, it's a way to refinance a recently purchased property without having to wait the typical 6 month seasoning period. So as soon as repairs are complete, it could be refinanced.

If there are any experts on this that could provide some insight, that would be great!

[Kyle J.]

Originally posted by @Nathan Goff:

@Andrew Postell

If you count hard money as cash haha. Would it not work with hard money?

Unfortunately hard money is still a loan.  And, as Andrew pointed out above, there are restrictions to using delayed financing.  One of them is that no "mortgage financing" was used to purchase the property.  

So you need to truly buy "all cash", or use a loan not secured by the property you're buying (i.e. a personal loan, HELOC on another property, etc). Any hard money lender is going to require a first position loan on the property they're loaning against though, and - in that case - you wouldn't qualify for delayed financing.

If you're still interested, you can read more about the delayed financing requirements at this link:

Fannie Mae: What are the requirements for a delayed financing exception?