My Parrent gave me money and I purchased an 2 units investment property? Can I cash out? I do not have an primary home.

Asked by seller0101, San Jose, CA Sat Jun 15, 2013

I know the delay financing on Fannie Mae required proof of the purchase fund to be my own fund, if I wait for after 6 months, would they still need me to prove the fund to be mine?

Help the community by answering this question:

+ web reference
Web reference:


, ,
Fri Oct 25, 2013
I may be able to do that mortgage for you. You can contact me by clicking my picture or for faster service call me at 949-297-1207

NMLS 287206
0 votes
Juliana Lee, Agent, Palo Alto, CA
Mon Jun 17, 2013
If the property deed for your investment property shows you as the owner, you will receive any money above what is owed on the property (either mortgage or recorded liens).

If you wish to use this money as a down payment on a new purchase and the property you sold has only been in your name for a short time, your new lender will probably want records showing that the property you sold was purchased with your own money (either savings or gifts).

San Jose real estate statistics at

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 and San Mateo Counties
Web Reference:
0 votes
Grace Tam, , Dublin, CA
Mon Jun 17, 2013
yes, you can cash out your investment property.
Did you just purchase your investment property? if yes, then you need to wait for 6 months to do cash out refi. if you purchased it over 6 months and the cash out fund can use to buy a your primary home, and you don't need to prove the fund because it is your own fund. Call me if you have more questions about your cash out refi.

Grace Tam
Loan officer
0 votes
Mitchell Pea…, Agent, San Jose, CA
Sun Jun 16, 2013

With a few exceptions, you must always prove that the funds you are paying with are yours or are gifted to you. The source of the funds must be shown. So if the funds are yours, they should be in a bank account, stocks, bonds, etc. If they are being gifted to you, then the one giving you the money must show the same proof of the ownership of the funds he or she is gifting. Then, when the money transfers to you, the paper trail of the transfer must be shown to Fannie Mae. Generally speaking, yes you should have the funds for 6 months. Exercising stock options or cashing in stock after your company goes IPO or gets acquired are not actual exceptions because you owned the options or stock before you converted them to cash equivalents. There are exceptions to needing 6 months seasoning (holding the funds for 6 months) such as receiving an inheritance, winning the lottery, and the like.

You can cash out from your investment properties to buy your home. That means re-financing your investment properties with a cash out loan. This isnot an exception to having the money in the bank for 6 months. The source of the money is your property and you've owned that property over 6 months, so that shows you have owned the money for over 6 months.

I would be happy to re-finance your investment properties and assist you with arranging the lending for your new home, as well as help you find your new home. You can call me, Mitchell Pearce, at 408-639-0211 or email me at

God Speed to your plans.

Mitchell Pearce
0 votes
Terri Vellios, Agent, Campbell, CA
Sat Jun 15, 2013
If I understand correctly, you are talking about "seasoning" of your funds. My understanding is that if the money is in your account for over a certain period then you are ok. Talk with your lender for specifics to what you are financing.
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more