Need some advice on conforming loans

[John Mich]

Hello All,

I recently used cash to purchased a property (Green St Property) in my wife's name using the proceeds from the sale of a house in my name. Our plan is to do a cash-out refi in her name only, after the 6 month seasoning period.  (In a month I will have 10 conforming loans in my name only, so both of us being on the loan is not an option) I'm currently wrapping up a delayed financing refi on another property (Brown St Property) I own, and they've asked me to provide a source for the funds used to purchase the Brown St Property.  I'm worried that in six months when we try to refinance the Green St Property, they'll need to source the purchase funds as well. Since they came from my bank account, from the sale of a property in my name only, I'm worried there will be issues.  

I hope that was easy enough to follow.

Can any of you loan officers out there, or folks with similar experiences provide any insight or help? Thank you, I really appreciate it!

[Jeff Dulla]

@John Mich I cannot speak for certain because each lender can be a little different or have overlays. But I believe the question that is being posed to you is only because you are doing delayed financing. And that issue specifically has to be vetted for delayed financing. They limit the amount you can take out and also vet out where the money came from (for instance if you received a gift or anything like that). 

Once you wait the full six months and cash out, you can do do so and most banks I know of will not ask for proof of the proceeds used to purchase the home.