This is a question that must be carefully reviewed under the Delayed Financing rules of FNMA.
When owning over 4 properties, cash out can be pulled out for the first six months only.
After six months (and over 4 properties no financing)
4 or under properties, they can borrow at any time. Prior to six months they must use the original purchase price after six months new value.
If a borrower wants to pull cash out of a property paid for cash, they can do so in the first six months of ownership. They may own up to 10 properties.
They must provide the HUD1 closing statement and proof of 'seasoned' funds or evidence of equity line, etc. along with evidence of wire transfers and/or cancelled EMDs.
The kicker here is length of time in ownership.
I work with many investor clients who deal with the same restrictions. But there are solutions!
Shane Milne | Lending in all 50 states | NMLS #81195
shane@thebesthomeloans | 949-273-4161 direct
This is not hard money, great rates.
CALL TODAY: (323) 648-7643
8383 Wilshire Blvd. Suite 1030
Beverly Hills, CA 90211
Direct #: (310) 254-6506
BRE# 01941171 NMLS# 1066216
But for those who find this by way of Google, I want to offer one of our portfolio products that will allow up to 20 properties financed. This is very uncommon and may help one of the many investors that are always looking for financing options in this limited lender market. Please note that you will have to have 3 months PITI in reserve for every financed property..
Our office serves WA,OR,CA
To refresh your memory, you said wrote: "I also offer a delayed financing unlimited cashout up to 10 homes. The only limits are the maximum loan amount is 417k and what ever the value depending on owner occupied, non owner occupied."
This is untrue. Investor and second home borrowers with five to ten financed properties are ineligible for cash-out refinance transactions unless all of the delayed financing exception requirements are met; one of them being they must happen within 6 months.
You should specify of this is a portfolio product otherwise people may incorrectly believe this is available through Fannie's delayed financing exception; which it is not.
I recommend that you talk with Doug Jones, the owner of Mortgage Magic.
Doug has been a lender for over 40 years and has a great deal of expertise in this area.
I recommend that you go to Doug's website at: http://www.mortgagemagic.com
You can also reach Doug Jones at his office: (408)975-2400
Charles Butterfield MBA
Real Estate Broker/REALTOR
Cell Phone: (408)509-6218
Email Address: firstname.lastname@example.org