How Long does it Take to Get Cash-out on a Property you Bought on Cash?
Did you know that you can pay cash for a property and then take out a cash-out within 24 hours? This is good news especially if you are into the investment business. This concept is called delayed financing.
Understand How Delayed Financing Works
2 years ago, you had to wait 6 months after purchasing a house on cash to get a cash-out. This was a guideline set by Fannie Mae. However, this restriction was lifted and now you can take out a cash-out within 24 hours of closing the sale. This period is called the seasoning requirement on the cash-out.
After the deal, you can take out a mortgage that doesn’t exceed the documented purchase price of the property.
Cash-out Refinance Vs Delayed Financing
There is some form of similarity between these two concepts. Both require some qualifications and follow the same process. However, there is a small dissimilarity between the two when it comes to time. You have to wait several months or more to get a cash-out refinance. On the other hand, you can get delayed financing almost immediately.
What are the Requirements?
First, you have to apply for an amount less than or equal to the documented purchase price of the property. You also have to show proof of sale of the property and also show that no financing was used by submitting the original HUD-1 document. Additionally, no lien should exist on the property and the funds used for purchasing the property must be documented.
How Can we Help You?
You need to realize that not all lenders offer this program. At Centex Capital, we have identified reliable lenders who offer this program within 24 hours or less. So, here at Centex Capital, your loan is halfway processed, you just have to finish the remaining half.