When you find the perfect home to buy, timing is everything. Quick action with a cash offer may be required, based on our low-inventory real estate market. You may be hesitant to tie up your cash, but it’s the only way to make a winning bid. Fortunately, with delayed financing, you can use your cash to purchase the property outright and then obtain financing for that property within six months.

Cash offers have made a comeback in the Front Range’s competitive real estate market. When you have the funds available to make a strong all-cash offer, but prefer to keep liquid savings for other purposes, delayed financing is the recommended strategy. After closing with cash, you apply for a cash-out refinance loan to recoup the cash you used to purchase the property. You’ll have liquidity again to use for things like making investments with returns higher than the mortgage interest rate, paying off high-interest debt, sending children to college, completing renovations, or investing in real estate.

Eligibility for delayed financing? To qualify, you must:
• Purchase the property with cash from your accounts – the lien-free property must be purchased without any financing assistance and documented as such.
• Purchase at “arms-length” – no personal relationships are allowed between the buyer and seller.
• Obtain financing within six months of the purchase date.
• Refinance an amount not to exceed the original transaction – the cash-out refi must not be higher than the purchase price, closing costs, points, and fees.
• Meet credit score and other lending requirements.

Delayed financing can be an excellent option if you are ready to buy in today’s market. Call any of our Loan Officers about this approach, and we can speak about your specific scenario.