Initial cash offer convertible to conventional?

Question

Im looking for a financing option that can allow me to be a cash buyer on the front end of the agreement and convert to conventional once the sale closes. Does anybody with experience with this type of lender have any referrals or insights?

Chris Davidson · Answer

Wanting to be a cash buyer and having the cash to be a cash buyer are two different things. If you have the cash just buy it and refi it after close. Otherwise look into delayed financing like @Michael Shepherd mentioned.

Find out if you are losing because of your financing or because of other terms. I've found a lot of times you may not be getting the offer for a different reason than you thought. Best of luck!

Nicholas L. · Answer

@Dan Bosworth

when you say 'convert,' do you mean closing with cash or something cash like (hard money). and then refinance into a conventional loan a few months later?

Wayne Brooks · Answer

@Dan Bosworth

You have been mislead…..a Cash buyer is one who can show proof that they Already have the Cash to buy, in an account in Their name. Any purchase where some lender is providing a loan is Not a cash offer. Some people like to say that a hard money loan “is the same as cash”…..but it is not.

Michael Shepherd · Answer

This is called Delayed Financing and small local banks will do it. I just did it with a Duplex.

Dan Bosworth · Answer

@Chris Davidson

Thanks for the reply Chris. We want to be able to be a cash buyer as we lose to cash buyers when we write offer w/conventional.

Chris Davidson · Answer

@Dan Bosworth Can you explain it more? At the end of the day a loan is cash to the seller. Are you closing with your cash and wanting to refi right after the sale, or are you using someone else's "cash" to close then trying to refi. There are options for all, but it depends on what you are looking to actually do. Finally before you do it see if it is even going to be helpful.

Cheers!

Dan Bosworth · Answer

@Eliott Elias

We offered conventional for this house.  I’m trying to find the vendors who offer cash then conventional loan package for the sellers who value cash offers higher than conventional.

Nicholas L. · Answer

@Dan Bosworth

you keep saying "convert to conventional once the sale closes"

but I don't think you mean that... you mean after the offer is accepted, but before closing.

i think what you're looking for is 'transactional funding.'  seems highly risk to me but YMMV...

Eliott Elias · Answer

There are lenders who offer this product. Why don't you offer conventional on the front end?

Initial cash offer convertible to conventional?

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