Delayed financing to leveral family members cash

[Cy Dale]

I am a new homebuyer looking to purchase in AZ.

I had a discussion about this with my lender but they didn't seem 100% confident in the answer they gave me.

My question was regarding using a family members cash to give me a more competitive offer.

I'd like to purchase the home in cash using the family members available cash and then immediately do a cash out refi to give the money back to them.

I understand a cash out refi requires a 6 month waiting period following the initial purchase. But there is a delayed financing guideline that would eliminate the 6 month waiting period.

My lender told me that my options were to A. have the family member provide the funds at closing as a gift and then wait 6 months for cash out refi or B. have the family member gift the funds to my account, season them, then do delayed financing.

Essentially he told me that delayed financing is only allowed when the borrower is the source of the cash used to purchase the property. I cant find this information on the actual Fannie Mae guideline. I only see a note that gift money cant be directly reimbursed using the proceeds from the loan. So in that case I would just need to have the funds reimbursed to me and then gifted back to the family member. But I don't see anything about the borrower needing to be the original source of the funds. https://selling-guide.fanniema...

I am trying to achieve this without having to wait 2 or more months for seasoning.

Can you help determine if my LO is correct or mistaken?

[Andrew Postell]

@Cy Dale well, it sounds like your loan officer is trying to find a solution here but it's not the right solution.  You are buying a property with a loan....you may not have thought about it that way but that's essentially what you are doing.  So if you wanted to have a loan/lien/mortgage filed from your family member then you will have ZERO SEASONING AT ALL.  I wrote a post highlighting this technique for Bigger Pockets that you can find HERE. The 3rd step is the solution phase. Just substitute "LLC" with "Family Member". Now I wrote that if you were using your own funds but the concept is the same. Just about any title company can help you file the lien and then you can refinance right away. Hope all this makes sense but do feel free to reach out with any other questions. Thanks!