Buying a Home

Delayed Financing - Should You Do It?

Dan Hubrich with Castle & Cooke Mortgage is back! Today he’s explaining the Delayed Finance Option. If you have the cash to pay, but would prefer to finance the property purchase, you could pay cash at the outset and then immediately finance the purchase after closing. It’s a great option to make your offer very strong in this competitive market!

This month I’d like to talk about a program that is rarely used but it’s a very powerful tool and good to know about. If you are in a position to pay cash for a home but you’re not quite sure if you want to do that VS financing, there is a way you can get the benefits of both! It’s called the “Delayed finance option”. Normally on a cash out refinance, 6 months is required to be on title before you’re allowed to do that. However with the delayed finance loan, you can buy a home with cash (chances are it will be easier to go under contract and you may get a better deal) and then immediately after closing on the home you can apply to do a cash out refinance to pay yourself back! Obviously this strategy will only work for folks that have the ability to pay cash in the first place, but it’s a strategy to leverage that cash in a smart way and be able to accomplish the best of both worlds. Reach out to me anytime with specific questions about this or any other loan product that you might be interested in.