What You Need to Know about Delayed Refinancing
Buying a home is probably one of the biggest financial choices that you will ever make, so it's imperative to be well aware of all your financing options. With more than 50 percent of home purchases in the state of New York being "all-cash" transactions, you might want to consider the benefit of using cash to win the bid on a home. After all, 50 percent is an astounding figure. But what if you don't want to invest all of your cash? Is there a way to overcome this obstacle? Sure, and it comes in the form of delayed financing. This type of financing allows you to pay cash for a home or investment property, directly followed by completing a cash-out refinance, meaning you can put the cash back in your pocket. Here's the lowdown on delayed refinancing FAQ, and how it can be of benefit to you. When did delayed financing become available? As surprising as it may be, delayed refinancing has been available since way back in 2011. Before the delayed refinancing program was put into effect, both buyers and investors were not allowed to complete a cash-out refinance until at least six months had passed since the initial purchase transaction had taken place. Should I consider delayed refinancing as one of my mortgage options? No, because it is not a mortgage option. Delayed refinancing simply erases the original boundary that stopped buyers and investors from completing a cash-out refinance before six months had passed since they bought the property. What requirements do I have to meet to qualify for delayed refinancing?
- The money (cash) that is initially used to buy the property must be recognized and documented to the bank
- The refinance loan cannot be greater than the initial loan
- There cannot be any liens against the home