Pay Cash Now, Mortgage Later?

[Scott S.]

If you pay for a property in cash, can you mortgage it after the fact? These days, with the housing market so hot, coming with a cash offer might move one to the front of the line. But, tying up $200-$300K in one property is a big ask. It would be great to pay now, mortgage later, if that's a thing.

[David M.]

@Scott S.

Interestingly, we have had a few discussions on this:

https://www.biggerpockets.com/...

https://www.biggerpockets.com/...

Basically, you are looking for delayed financing.  It is part of the fannie/freddie rules.  It allows you to purchase the property in cash, then get your loan within 6months after closing.  You can only base the mortgage on the purchase price of the property.  So, this isn't beneficial if you are doing some sort of brrr.  But, this does let you offer and close in cash, then get your loan afterwards with what should be less headache than doing a "cash-out finance" later.  For example, I believe you don't have to pay for an appraisal.  Since you just purchased the property, that is the market value...

Good luck.