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Designed to educate consumers and real estate professionals about home mortgages.

Delayed financing in Arizona - cash out one day after home purchase.

What is delayed financing and who could benefit from it?


Delayed financing is just a fancy way of saying that someone waits until after a home purchase to secure the home with a mortgage. The home is purchased with cash and then a mortgage is secured to the property after the fact. The mortgage process can start as little as one day after the home purchase. It is a little known and underutilized loan program. In fact, many lenders don't even offer this option.

What are the benefits of delayed financing?


Delayed financing allows a person to negotiate and purchase a home as a cash buyer, while also allowing them to leverage their investment after the fact. Many sellers are willing to lower their asking price or choose an offer for a cash buyer who is willing to close fast, so this can be a bargaining chip in the offer/contract process. This loan program also allows investment properties, so investors who need to free up cash for more purchases can certainly benefit from this.

What are the limitations of delayed financing?




This program is not going to help everyone and there are limitations to qualifying. With delayed financing, the maximum amount of the new mortgage is equal to 70% or lower of the home's purchase price. Along with the 70% limitation, there are some other criteria the borrower and property must meet:

  • The purchase must be an arm's length transaction (buyer and seller cannot have any relationship with each other, i.e. business partner, family member, etc.)
  • The settlement statement or deed from the purchase must show no mortgage financing
  • The preliminary title report must show no existing liens on the property
  • Funds used to purchase the property must be documented (bank statements, personal loan documents or line of credit access)

One other notable exception to this program is that gift funds are not allowed as the source funds for original purchase. If gift funds were used to buy the home, a minimum of 6 months is required.

This program certainly has its technical aspects, but that's what I am here for. If you have any questions or want to see if your cash home purchase would qualify, just pick up the phone and call me at 480-368-7715. 

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Website: Mortgages in Phoenix, AZ

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