Double Dipping with Fannie Mae Delaying Financing Exception?

[Richard Davis]

Can I buy a property (Property 1) with cash, refinance it the next day through the Fannie Mae delayed finance exception, turn around on day three and buy another property (Property 2) with the cash I get out through this refinance, and then - on day four - refinance Property 2 with the Fannie Mae delayed finance exception as well?

My question is about whether I can tap the delayed finance exception twice in sequence.

I'm wondering if this approach is forbidden by the following clause from this description in the chart titled "Delayed FInance Exception":

"The original purchase transaction is documented by a settlement statement, which confirms that no mortgage financing was used to obtain the subject property."

Does a refinance loan through the Fannie Mae delayed finance option count as mortgage financing? If so, then my read is that no, you cannot double-dip with this program. They won't refinance #2 purchased with money obtained from refinancing property #1.

Thanks for considering.