Purchasing real estate with cash can help an investor close quickly, compete for an off-market property, and avoid financing delays. However, an all-cash purchase can also tie up a substantial amount of capital that could otherwise be used for renovations, reserves, or additional acquisitions. We offer delayed financing solutions that allow qualified borrowers to recover liquidity shortly after completing a cash purchase.
What Is Delayed Financing?
Delayed financing allows a borrower who recently purchased a property with cash to obtain a mortgage without waiting through the seasoning period normally associated with a cash-out refinance. Instead of leaving the entire purchase price invested in the property, the borrower may be able to obtain financing based on the completed cash transaction and recover a substantial portion of the funds used for the acquisition. Maximum financing is subject to the property, occupancy, borrower qualifications, source of purchase funds, and applicable lending guidelines.
Delayed Financing Program Highlights
- Financing available up to 80% LTV
- Loan amounts available up to $10 million
- Available shortly after an eligible cash purchase
- Primary residences, second homes, and investment properties may qualify
- Multiple income-documentation options
- Suitable for many borrower and property profiles
- Can help replenish capital used for an off-market purchase
Multiple Ways to Qualify
Borrowers do not all document income in the same way. Our delayed financing programs offer several qualification options:
Full Documentation – Salaried and traditionally employed borrowers may qualify using tax returns, W-2 forms, pay stubs, and other standard income documentation.
Bank Statements – Self-employed borrowers may be able to qualify using personal or business bank statements instead of tax returns. Deposits are analyzed to determine eligible monthly income.
Profit-and-Loss Statements – Certain self-employed borrowers may qualify using a professionally prepared profit-and-loss statement, subject to program requirements.
1099 Income – Independent contractors may qualify using one or two years of 1099 forms rather than traditional W-2 income documentation.
Written Verification of Employment – A written verification of employment, or WVOE, may be used to document income without requiring tax returns under qualifying programs.
DSCR Qualification – Real estate investors may qualify based primarily on the rental income generated by the subject property. A DSCR loan generally does not require the borrower’s personal employment income or tax returns.
Asset Qualification – Borrowers with substantial eligible assets may qualify by converting those assets into a calculated income stream or through an asset-based qualification program.
Off-Market Purchases
Off-market transactions can move quickly, and sellers frequently favor buyers who can close without a traditional mortgage contingency. Delayed financing helps combine the negotiating strength of a cash purchase with the long-term benefits of mortgage leverage.
- Close within a shorter timeframe
- Present a stronger offer
- Negotiate more favorable purchase terms
- Acquire properties that require renovation
- Avoid delays associated with an initial mortgage
- Compete with other cash buyers
Contact us to discuss your recent cash purchase and delayed financing options.
