Delayed Funding loans are Great for Cash Transactions
Did you know that if you paid cash for your home or investment property, you can regain the cash investment immediately after closing? This means there is no penalty in your 401K as you replace the funds within 60 days.
After closing, the buyer can refinance the property and get their cash back. This frees up the cash to purchase another property. This is great for investors looking to purchase properties that cash flow and want to leverage their funds and purchase another home.
The new loan amount can be the actual documented amount of the borrower’s initial investment in purchasing the property, plus the financing of the closing costs, prepaid fees and points.
This loan is for your clients that have cash assets and would like to buy a home with cash and then get the cash back. This moves your buyers into the front of the line on multiple offer transactions.
Ø Primary Residence and investment properties
Ø Cash back off appraised value
Ø Conforming loan limits $417K
Ø Must be arms-length purchase transaction
Ø Max primary home loan to value 85%
Ø Max Investment home loan to value 75%
Ø Maximum debit to income ratio 38%
For more information about how this can be useful for you and your buyers, please call:
Max Nasab
Mortgage Consultant
206-719-2694
NMLS ID# 112686
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