Delayed Financing ExceptionA cash-out refinance within six (6) months of a purchase transaction when no financing was obtained for the purchase transaction are allowed under the following parameters: The new loan amount is not more than the actual documented amount of the borrower’s initial investment in purchasing the property, plus the financing of closing costs, prepaid fees, and points (subject to the maximum LTV). 1.

Typical commercial lending is LTV 70-75%always an ARM, like 20 due in 10 (or even 5)property self-sufficient (aka DSCR 1.1 - 1.3 depending upon the lender)with an NOI that supports reserves 10%, vacancies of 12%1/2 year prepaid taxes AND insurance (last parts of PITI)Your personal credit should not be part of the qualification process.

A couple things.  2K is prepaid items.  

Most closing cost are charged by the lender in the form of origination fees and prepaid interest, taxes and insurance.

The renter has to pay (with a debit/credit card ) before the report is generated, It also has an app for your smart phone. 

Account ClosedA cash-out refinance within 6 months of a purchase transaction when no financing was obtained for the purchase transaction are allowed under the following parameter;  The new loan amount is not more than the actual documented amount of the borrower’s initial investment in purchasing the property, plus the financing of closing costs, prepaid fees, and points (subject to the maximum LTV).After the 6 month mark there is no restriction to purchase price and closing costs. 

The first transfers 5% of gross rent to an account called "Maintenance - Prepaid".

In the past, I used prepaid legal in the interest of saving money and ended up paying more due to the inexperience of the lawyer.

I've seen prepaid items such as taxes and interest rolled into loan on initial good faith estimates (about 4K) for refinance.

No cash was taken in pocket from the closing table.What is the debit and credit for the closing costs of Property A?