.png)
What is delayed financing in a mortgage?
Delayed financing is a strategy in which a buyer purchases a property with cash and then, after closing, takes out a mortgage secured by that property to recover some or all of the cash used. It differs from a standard purchase mortgage because the loan is placed after the purchase rather than at it. Eligibility depends on the program.
Investors and buyers in competitive markets use it to make a cash offer and close quickly, then restore liquidity for the next deal. Lenders typically review the original purchase documents and the source of the cash used to buy.
Delayed financing is often documented as a cash-out refinance, but programs may treat it differently from a standard cash-out, including how soon after purchase it can close and how much can be taken out. It isn't available on every program.
