Delayed financing provides a great opportunity for eligible individuals to quickly access funds for real estate investments right after purchasing the property with cash upfront. To qualify for delayed financing, there are certain criteria set forth by Fannie Mae that must be met.
To be eligible, individuals must have made an all-cash offer on the property and provide documentation proving that the initial investment was made without any financing mortgage involved.
To apply for delayed financing, potential borrowers will need to provide various documents. These documents include proof of purchase (HUD-1 Settlement Statement), evidence of the source of funds used for the initial investment, and any other documentation required by their loan officer.
While delayed financing does not require a credit check during underwriting, it is worth noting that a favorable credit history may still impact loan approval and interest rates in future applications.
When it comes to the type of loan available for delayed financing, it typically involves a conventional mortgage loan. Other types of loans like FHA or VA loans may not be eligible.
Working with an experienced loan officer who specializes in delayed financing can be beneficial. They can help navigate through the application process smoothly and ensure all necessary documentation is provided accurately.