Delayed finance exemption strategies

[Jeff M.]

I have a new property under contract and am looking to pull my cash out sooner than the traditional 6 month cash out refi seasoning period. The home is almost complete needing only new flooring, interior paint, and a few other upgrades. Has anyone estimated the rehab costs and placed them on the original purchase settlement statement in an attempt to recoup them using the delayed finance exemption? A basic example would be 100k purchase and 30k rehab. All of that paid to title at close. Title them sends back the 30k for rehab but shows it on the settlement statement. Place appraises for over 173k or so.  I did this with another deal but ended up doing a major rehab and chose to wait for the rest of the 6 months to refi. Any info is appreciated.

Thanks.

[Andrew Postell]

@Jeff M. any time you use the "delayed financing" strategy, even if you list your repairs on your HUD, you are paying a higher rate than a traditional refinance. I wrote an entire post on this topic HERE if you would like to read it.  I wrote it over a year ago and since then the strategy has gotten better...you can refinance up to 85% of the value of the property in today's market.  Let me know if you have any questions on it.  Thanks!