Delayed financing is a method for getting a mortgage after you’ve purchased a piece of real estate using cash. Put simply, delayed financing offers a way to purchase a home in which you pay cash upfront, then quickly obtain a cash-out refinance to mortgage the property. Doing so effectively returns a large portion of the money you paid to acquire a home to you, which you then can use for other purposes, like:
- Building your savings
- Making investments
- Paying for renovations
- Paying off high-interest debt
- Purchasing a second home
Under the terms of a delayed financing transaction, you buy a home for cash, then immediately take on a mortgage to reclaim most of the purchase price. This method of financing allows you to both make a more attractive all-cash offer to home sellers (giving them the confidence that a transaction will close) and put money right back in your pocket.
Delayed financing allows you to use a cash-out refinance to obtain a mortgage and enjoy the flexibility of making long-term payments over a period of time, so you can avoid tying up all your savings in the home.
Cash buyers can see benefits immediately. If you’re seeking to obtain delayed financing on a property purchased with cash in the last 6 months, you can take out cash right away without waiting.