Delayed financing questions

[Steven Cameron]

We are confused about delayed financing. I was under the impression that for example

The property values at $150,000 @ 75 percent LTV would be $112,500 but due to the fact that we paid $95,000 delayed financing would only let us borrow the lesser of the 2. Which would only allow us to borrow $95,000.

But the broker has came back and her reply is. 

subject to LTV, which on investment 3 unit 75% is max LTV. Also, New loan amount is NOT more than the borrowers initial investment in purchasing the property. So your investment was 95,000 and the max we can loan on is 75% of that or $71,250. You can't refi and get 100% of what you just paid cash, unfortunately. Do you want to wait 6 months and get it appraised to see what you can get then?

[Jeff Dulla]

@Steven Cameron My understanding is that you are still stuck with the normal loan to value requirements on a MFH - so 25%. So you are accurate in thinking at most, the largest loan you would be able to get on a Fannie/Freddie refinance would be 75% (if it was a rate/term refinance). However, delayed financing basically says up to the lower of the two amounts - either 75% or a max or your initial investment, whichever is lower. If your initial investment was $95,000, that is the max you can get. And I haven't seen a situation where the lender applies the 75% to that initial investment amount when you are getting a new appraisal at $150,000. 

Unfortunately to do a full cash out refinance, you do have to wait six months. To take that a step further, I believe the max loan to value on a cash out on MFH is actually 70%, not 75%. So $105,000 is the max you could get on a $150,000 value, six months from purchasing.