Delayed Financing with assignment fee

[Patrick Shep]

I’m looking at paying cash for a deal and using delayed financing. It’s a wholesale deal with an assignment fee. If I do delayed financing am I able to include that assignment fee?

[Eric Veronica]

The guideline states 
"The new loan amount can be no more than the actual documented amount of the borrower's initial investment in purchasing the property plus the financing of closing costs, prepaid fees, and points on the new mortgage loan (subject to the maximum LTV, CLTV, and HCLTV ratios for the cash-out transaction based on the current appraised value).

The delayed financing guideline states the the new loan amount cannot exceed the borrowers initial investment. The key word is initial investment.  The guideline does not state the initial purchase price.  If the underwriter considers the assignment fee as part of the "initial investment" then you should be able to pull out the purchase price + assignment fee + closing costs.  At a minimum the assignment fee would need to be listed on the settlement statement at closing

Hope this helps.  Feel free to reach out if you have any additional questions.