Private Lending & Conventional Mortgage Advice
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated almost 13 years ago on . Most recent reply
buy with cash then finance
Does anyone know if there are seasoning issues if I would purchase a property with all cash then finance it?
-Michael
Most Popular Reply
Be careful here. If you are paying cash and refinancing there is no underlying mortgage to pay off. This becomes an unseasoned cash out refi on an investor property and I guarantee you that these banks will have an issue with it. We run into this all the time. Typically what you will find is that they will allow cash out only to 65-75% of your purchase price which leaves a significant portion of your cash and improvements tied up.
Better NOT to buy with cash but always make sure there is a note/deed of trust or mortgage filed at closing on the purchase so you are alwys paying off underlying debt. Unseasoned rate and term (no cash out) is much easier.