After paying cash for a home are you able to finance immediately after deal is done?
I am a first time home buyer looking to get the $8000.00 tax credit. I am putting an offer in on a house which will be getting multiple offers. My families company is willing to put up the approx $130,000 for the home to make my offer stronger than the others. Would I be able to refinance the home immediately after the deal is done and the bank has been paid?
JUles,
I believe FHA requires 12 months seasoning in order to do a cash out..Conforming is 6 months.
Yes, but I would suggest making a cash offer w proof that you have the funds to close, but reserving the right to finance the home. Make your offer also strong with a short inspection period and decent earnest money and a relative quick closing. If it is owner occupied, a personal letter with pictures of your family has helped. If bank owned, it's just the bottom line.
You will need to wait 6 months before starting the refinance on a cash out transaction. The loan amount will be based on the purchase price of $130,000 making the maximum conventional loan you could obtain $82,400 or 80% of the purchase price. If you use an FHA loan your loan amount could be $110,500 or 85% of the purchase price. As long as you do not need to pay back the full $130,000.
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