Financing in 94086>Question Details

lshih, Home Buyer in 94086

Hi, I am in contract to buy a house. I am trying to get the loan to close in time, however, due to some factors, it may not happen. I have the ability

Asked by lshih, 94086 Sun Oct 6, 2013

to close the house with cash. My question is will it be possible wto close with cash and have my lender continue to process the loan soon after excrow close? Please advise.

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It’s really going to depend on the type of financing you are getting, and why there is a delay. Gregorio does a good job of explaining how the Fannie Mae program works, but the same type of program does not exist for all loan types. Also, be aware that you will be paying several costs twice as refinancing is a separate transaction. You should consider the additional costs when deciding what to do – especially if the delays are due to issues on the seller’s side.
Web Reference: http://www.SacRELender.com
1 vote Thank Flag Link Mon Oct 7, 2013
If you closed on the house with cash, you would refinance it after closing. Yes there are options for refinancing right after you close. Let me know if I can assist.
1 vote Thank Flag Link Sun Oct 6, 2013
As many have mentioned, this is called "Delayed Financing". You can do Delayed Financing with:

Fannie Mae
Freddie Mac

FHA and VA don't have "delayed financing" specifically but you can do a cash-out refi.

With FHA, you'll be able to do a cash-out refi up to 85% of the lesser of the purchase price or appraised value but you must make six mortgage payments first.

With VA, you can do it immediately and your max LTV is based off the current appraised value.
Web Reference: http://RobWeber.com
0 votes Thank Flag Link Fri Apr 25, 2014
Hi Ishih,
I know a lender who has a mortgage program that sounds perfect for you situation. His program allows you to pay cash now to close the deal, then soon after it closes you get a loan on that property with conditions similar to if you had gone the traditional financing route in the first place. Let me know if you want more info on that program.
0 votes Thank Flag Link Fri Apr 25, 2014
Yes you can do what is called a delayed financing loan. We do do those actually. I know I am late coming to this party, but we fund real fast, I may be able to get you loan funded on time, when you need to close?
Contact me to talk about this, you can click on my picture for information on line or for faster service my phone number is 949-297-1207
0 votes Thank Flag Link Fri Oct 25, 2013
In general anytime there is a major shift in money the loan may be delayed and new paper work filled out. You need to talk to both your loan agent and your real estate agent.

Depending on how late your loan will fund, it may be possible to get the seller to extend the close of escrow date. Your real estate agent has probably negotiated similar problems many times.

The common guidelines are that if you refinance a home purchase and want to get cash out you typically have to wait 6 months but there are exceptions
https://www.fanniemae.com/content/announcement/sel1105.pdf

Talk to your loan agent.

Home values for zip 94086 http://julianalee.com/zip-code/94086-statistics.htm

Juliana Lee
Top 2 agent nationwide at Keller Williams Realty, the nations largest
Cell 650.857.1000

Over 20 years experience
Over 1,000 homes sold in Santa Clara County and San Mateo County
.
Web Reference: http://julianalee.com
0 votes Thank Flag Link Thu Oct 10, 2013
"Gregorio does a good job of explaining how the Fannie Mae program works, but the same type of program does not exist for all loan types."
----
What does that even mean? If they pay cash, they will not have a loan, what "loan types" are you referring to? All they need to do after closing is go to a Fannie lender, which is virtually ANY lender and use the delayed financing option.
0 votes Thank Flag Link Mon Oct 7, 2013
Yes and no. Your lender will have to start a new application process to meet the Fannie Mae Delayed Financing Exception. They cannot just continue with the current one as the dates and type of loan won't be in compliance. If you meet the criteria below you should not have an issue with a new application dated after funding.

Here are the details:

"Borrowers who purchased the subject property within the past six months (measured from the date on which the property was purchased to the disbursement date of the new mortgage loan) are eligible for a cash-out refinance if all of the following requirements are met.

The original purchase transaction was an arms-length transaction The original purchase transaction is documented by a HUD-1 Settlement Statement, which confirms that no mortgage financing was used to obtain the subject property. (A recorded trustee's deed [or similar alternative] confirming the amount paid by the grantee to trustee may be substituted for a HUD-1 if a HUD-1 was not provided to the purchaser at time of sale.) The preliminary title search or report must confirm that there are no existing liens on the subject property.

The sources of funds for the purchase transaction are documented (such as bank statements, personal loan documents, or a HELOC on another property).

If the source of funds used to acquire the property was an unsecured loan or a loan secured by an asset other than the subject property (such as a HELOC secured by another property), the HUD-1 or the refinance transaction must reflect that all cashout proceeds be used to pay down, if applicable, he loan (unsecured or secured by an asset other than the subject property) used to purchase the property. Any payments on the balance remaining from the original loan must be included in the debt-to-income ratio calculation for the refinance transaction. Note: Funds received as gifts and used to purchase the property may not be reimbursed with proceeds of the new mortgage loan.

The new loan amount can be no more than the actual documented amount of the borrower's initial investment in purchasing the property plus the financing of closing costs, prepaid fees, and points on the new mortgage loan (subject to the maximum LTV/CLTV/HCLTV ratios for the transaction).

All other cash-out refinance eligibility requirements are met and cash-out pricing is applied.

Note: 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 listed above are met."



If your current lender cannot accomplish this, I'd be happy to assist you.
0 votes Thank Flag Link Sun Oct 6, 2013
So Rates will likely be higher like a Heloc ?
Flag Sun Oct 6, 2013
I agree, This is a lender question... Don't hesitate to call your agent as they work for you... It does seem if you close with cash... You will be doing a Re-fi as you are changing the deal... But, again, talk to the lender... they know all your details and can give you the straight answer.
0 votes Thank Flag Link Sun Oct 6, 2013
I actually have a loan in the works but just will not close ontime because of my delays. I want to close with cash and continue the current loan after close of escrow. thatis my question
0 votes Thank Flag Link Sun Oct 6, 2013
I agree with Elena below - your lender is going to be the best source of information here.
0 votes Thank Flag Link Sun Oct 6, 2013
I think the lender will be the best to answer this question. You also may be able to obtain an equivalent of a purchase time loan within a short period after the closing. You also may try to delay the closing.
Web Reference: http://talisrealestate.com
0 votes Thank Flag Link Sun Oct 6, 2013
Yes. You have up to 6 months after the purchase of the home to complete what is called delayed financing.

Maybe I can help you with getting the loan in time.

Alex Greer
Loan Officer
NMLS #1056079
http://www.TheMortgageOutlet.com

408-352-5147
AGreer@TheMortgageOutlet.com
0 votes Thank Flag Link Sun Oct 6, 2013
Whole new paper work? No, just the regular paperwork involved in getting a loan.
Flag Mon Oct 7, 2013
Does it have to be whole new paper work?
Flag Sun Oct 6, 2013
Hi Ishish,

Who is your Realtor? Do you have one?? Why isn't your Realtor helping you with this?? You need to have your Realtor sort this out. I think, Yes, you can close with All Cash then Finance the Loan. You may need to change/fill some forms, but if you can close with Cash, I don't think anyone will refuse..... You can also speak with the Title/Escrow Co. regarding the same...
If you DONT have a Realtor, and need help, contact me. Otherwise, wishing you the Best,
Nina Daruwalla
BRE# 01712223
0 votes Thank Flag Link Sun Oct 6, 2013
You will need to talk with your lender. I heard that some lenders have a time restriction between closing and funding a loan.
0 votes Thank Flag Link Sun Oct 6, 2013
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