Delayed Financing Mortgages

Delayed financing enables individuals who purchased a property with cash to quickly secure a mortgage through a cash-out refinance loan. This approach allows homeowners to access a portion of the funds tied up in their property for a variety of purposes. Essentially, it offers a means to leverage equity from an all-cash sale, freeing up funds for various expenses.

Although a beneficial option for suitable buyers, it’s important to note that delayed financing is not a distinct type of financing. Instead, it serves as an exception to the cash-out refinancing guidelines established by Fannie Mae and Freddie Mac, which typically impose a waiting period of six months for a cash-out refinance. However, in the case of an all-cash purchase, there is no mandatory waiting period before you can refinance your home.

As per Fannie Mae and Freddie Mac requirements, a typical waiting period of six months is mandated after purchasing a home before conducting a cash-out refinance. However, with an upfront cash purchase, there’s no waiting period to initiate the refinancing process.

Florida Delayed Financing Mortgage Requirements:

The borrower must own the property
A title report must confirm there are no liens on the property
The settlement statement must verify that the property was purchased with cash
The source of the funds used to purchase the property must be sourced and documented. These documents can include bank statements or documents from a personal loan or home equity loan secured by another property
Minimum Credit scores of 660
Up to 80% loan to value
Income can be documented with pay stubs, W2’s and / or tax returns
Income can be documented with 12 or 24 months of bank statements
Rental income can be used to qualify
Debt Servicing Coverage Ratio [ DSCR ] for investment properties only can be utilized
Debt to income ratio less than 50%
Property can be used as a primary home, second home or an investment property
Property must a single family home, multifamily home up to 8 units, townhouse, warrantable condo, non-warrantable condo, or a condotel
Minimum loan amount of $200,000
The contract sales price will be used as the property value; an appraisal will be used to confirm the property value.

Florida Delayed Financing Mortgage Benefits

Get cash out immediately after purchasing home in cash – no waiting period. By utilizing all cash for your home purchase, you bypass the standard six-month waiting period typically associated with refinancing to recover your funds.
Opting for a cash purchase may enhance your negotiation position and increase the likelihood of your offer being accepted. Sellers often favor cash offers as they eliminate concerns about a borrower securing mortgage approval.
Reclaim your funds: Post-purchase financing liberates cash that can be directed towards various expenses, including home improvements or the acquisition of a second property.
Warrantable Condo Properties available
Non-Warrantable Condo Properties available
Condotel Properties available

How does delayed financing work?

To begin, you purchase a home using cash. Shortly after the sale concludes, you initiate a cash-out refinance loan to leverage your equity. The borrowing limit is restricted to 80% depending on the property type and usage.

This approach is particularly advantageous for investment-property buyers, constituting 16% of all-cash buyers in December 2022. It allows them to preserve liquidity that can be employed for acquiring additional properties. While primary-home and second-home buyers can also qualify for delayed financing, the associated closing costs and other expenses often outweigh the potential benefits.

When your ready to get started on your Delayed Financing Mortgage, we are experts to guide you through the entire process, the first step is getting you pre-approved. You can apply online or you prefer to speak with one of our Delayed Financing Mortgage Experts, we would be happy to speak with you. Call or text us at 407-955-4575.