New Delayed Financing Rule: Pay Cash for a Home, Get Cash Out Under 6 Months!

The new Delayed Financing Rule allows you to take cash out of a property you just purchased within the last six months!

If you paid all cash for a home within the last six months and want to pull cash out of the property you are now permitted to do so. The Delayed Financing Rule states you now no longer have to wait six months, put it another way the underwriting requirement of waiting six months to pull “cash out” of a property has been eliminated.

The Delayed Financing Rule now allows real estate investors to purchase a home with all cash and then mortgage that cash back immediately post closing via new mortgage loan. This brand-new guideline change direct from Fannie Mae is designed to promote the origination of new mortgages.

Here is how is how the Delayed Financing Rule works.

In order to take advantage of this new program there are some particulars to be aware of. Following is a list of those items:

The new mortgage may not exceed original purchase price

The original purchase must have been arms-length

The original HUD-1 must validate that no other financing was used

No existing liens on the property

Funds used for original purchase must be documented

The new rule will go up to 70% loan to value for investors with up to four financed properties and up to 65% loan to value for investors with more than four financed properties.

The best part about this program is there no adjustments to pricing and no other unique underwriting requirements. Send an email to As a Santa Rosa Mortgage Lender I can help you get the “cash out” of your free and clear property.

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  1. April @ Deer Valley Real Estate on July 27, 2011 at 7:59 pm

    This is a great program for real estate investors. Thanks for sharing a new info.

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