Delaying Your Financing To Cash-Out On A Home

November 06, 2020 by Dan Green

According to data from the National Association of REALTORS®, a fair number of home buyers do all-cash deals when they buy a house.The real estate trade group reports that roughly 1-in-5 home buyers pay cash for their homes.

But, not every cash buyer leaves its cash tied up the house; invested in real estate.

It’s common for cash buyers of homes to use a mortgage technique called Delayed Financing to get their cash back within six months of their closing.

With delayed financing, you pay cash for a home today, then do a cash-out refinance with a lender within six months of closing to get your cash back.

After six months, delayed financing is no longer available, per mortgage guidelines.

Delayed financing is most common among real estate investors and home flippers, but it’s a mortgage technique that anyone can use.

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