Fannie May delayed financing

[Darren Mesibov]

Does anyone here have experience with the Fannie May delayed financing exception? I'm currently under contract for a cash purchase on a SFH in Huntsville, AL and considering a cash out refinance under this program as an alternative to waiting the standard 6 month period after close. Has anyone here done this before? Are there any drawbacks or restrictions? Any input from someone who is familiar with this type of loan is appreciated.

[Mike Burkett]

@Darren Mesibov  Delayed financing is not the same as a cash out refinance.  What ever terms you could have gotten if you got a mortgage when you bought the house are going to be the same as when you get delayed financing.  You have up to 90 days.  If you could have qualified for 75% of the purchase price when you bought it, that is the amount you should be able to borrow with delayed financing.  If you are buying this with partners, document where all the cash comes from.  You will need to provide that.  Fannie Mae does not lend to partnerships.  You will need to purchase the property in the name of each of the individual partners.  Interest rate should be the same if you buy it in your name individually or 2 or 3 of you buy it together.  Rate won't change because of the number of buyers.  Rates for investment properties are higher than rates for homestead.  If you tell the lender you are going to live in the property you will get a lower rate.  If you tell them you are going to rent it out, the interest rate will be higher.