Delayed Financing

What is it and how can it help you?

During the times of late 2021 and into 2022, we have seen a shift in the market for purchases. Gone are the times of a buyer being able to pick and choose between a multitude of houses and choosing one that they like, then offering a percentage of the sales price in hopes of getting a value.

In 2021 and 2022, the market has shifted. The supply of homes is at an all time low and this has caused a run up on prices. But it has also caused a shift in “how” one might best position themselves to be the “offer that gets chosen”. Well, here is a tool that could help a buyer differentiate themselves from the other offers and allow them to have a slight advantage.

Delayed financing has been around for years, but was not often utilized.

Here is how it works…

You find a home you love and you can, through a variety of sources, come up with the liquid funds needed to purchase the home out right. Maybe you do a “short term” liquidation of retirement or investment funds. Maybe you have cash on hand. Or maybe you have the ability to Borrow funds on a personal basis from an establishment or even a person. So this enables you to present a “Cash offer” to the seller accelerating the closing date by several weeks. The seller can ease their worries about the appraisal or delays involved in obtaining financing. And you can close quickly.

And then, you come to Mortgage Choice and we assist you with financing of that home “post purchase”. So you remove the headaches of the rushed transaction and you immediately strengthen the terms of your offer, differentiating yourself from the other bids. It’s a great tool to use in the right situation. Ask us for the specifics before signing a contract, but take advantage of the extra power it provides for you. 

Some important notes to consider when utilizing delayed financing to purchase a house.

  • Transaction must be completed within 6 months of purchase
  • Loan is limited to the amount you invested. Ie- you can’t get back more than you put in
  • A proper documentation trail of where the funds came from must be kept
  • Funds must go back to the places they came from. (back to 401k, back to the entity you borrowed from, back to your “asset account”.)
  • It is treated as a cash out “refinance” with the “waiting periods” waived.

Contact us today to learn more about this unique mortgage option.

1003 High House Rd #105, Cary, NC 27513  |  (919) 655-0330 office  |  (919) 655-0335 fax
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