I am sure you have heard that this hot real estate market is full of all cash buyers.  We are seeing 10-20 offers on every property and the winning offer is often an all cash buyer.  What do these all cash buyers do with so much equity after the transaction?  They are turning to a product called the Delayed Financing alternative.  Borrowers who purchased the subject property within the past six months are eligible for a cash out refinance if certain requirements are met.  Typically, the loan amount can be no 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.  Some investors allow financing up to 80% of the purchase price!  The purchase would have to be an arms-length transaction, subject to each investor’s maximum loan to value ratios, and be documented by the HUD-1 confirming no mortgage was used to purchase the property.  Also, keep in mind that no gift money can be reimbursed; it wouldn't be a gift then!

Call Monica at RPM Mortgage today, and we can discuss your particular situation. You may qualify for a Delayed Financing transaction, so that you can use that stored up equity!! 415-710-0354 mdiperna@rpm-mtg.com.