Delayed Financing

If you can purchase a home for all cash (to strengthen your Offer) … but, would prefer to not use all your cash … you can pull cash out and put a mortgage in place 30 days later! 

Normally, you must be on title for 6 months before you can do a cash-out refinance (Conventional guideline).  But, in this situation, you can pull cash out immediately after closing.  It’s called “delayed financing”. 

You are limited to two things:
1) the total investment cost (i.e., the purchase price, closing costs, plus any costs for repairs and/or improvements), and
2) can’t go over 80% LTV (loan-to-value) (for a Primary Residence).  While an appraisal will most likely be required, you can’t use the Appraised Value for 6 months. 

Therefore, the Total Investment Cost (explained above) will be used to determine the LTV.  And lastly, the rate will be slightly higher because this will be considered a “cash-out” refinance (versus a “rate & term” refinance).