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Delayed Financing Creates Investor Loyalty for Realtors and Lenders

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Mortgage Professional America | 11 Feb 2013, 10:02 AM Agree 0
Making the most of what opportunities the market bares can be the differentiator between making a living and just scraping by.
  • Mark | | 11 Feb 2013, 03:07 PM Agree 0
    Did you mean to say in paragraph two, "a low down PAYMENT, first time buyer."?

    Good article, thanks, and though I know what you meant, I still got a good chuckle out of how that paragraph reads.
  • Bob | | 11 Feb 2013, 06:33 PM Agree 0
    I have never heard of this program. Do you know of any wholesale lenders offering this product? Thanks
  • Alan | | 11 Feb 2013, 09:32 PM Agree 0
    After stating, "up to 65% of the purchase price," what does, "The new mortgage amount cannot be more than the actual documented amount of the borrower’s initial investment in purchasing the property" mean?
  • Scott Schang | | 13 Feb 2013, 12:00 AM Agree 0
    Hi Mark, yeah good point! Now that I read that again, I can see where that could be misinterpreted.
  • Scott Schang | | 13 Feb 2013, 12:04 AM Agree 0
    I believe we offer this program through our wholesale channel, but I don't know for sure. Shoot me an email and I can follow up. You can also search the FNMA seller guide for Delayed Financing and you'll find the guidelines there.
  • Scott Schang | | 13 Feb 2013, 12:30 AM Agree 0
    Hi Alan, here's the excerpt from the FNMA Seller Guide:

    If the source of funds used to acquire the property was an unsecured mortgage or a mortgage secured by an asset other than the subject property (such as a HELOC secured by another property), the HUD-1 for the refinance transaction must reflect that all cash- out proceeds be used to pay down, if applicable, the mortgage (unsecured or secured by an asset other than the subject property) used to purchase the property. Any payments on the balance remaining from the original mortgage must be included in the debt-to-income ratio calculation for the refinance transaction.

    Note: Funds received as gifts and used to purchase the property may not be reimbursed with proceeds of the new mortgage mortgage.

    The new mortgage 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 on the new mortgage mortgage (subject to the maximum LTV/CLTV/HCLTV ratios for the transaction).

    I interpret this as meaning that Delayed Finance mortgage can only be used to make the investor whole for monies they either personally used, or borrowed, to purchase the property. The Note regarding Gift Funds is an example of limitations of the amount of the cash out the owner is eligible to receive through the refinance, not to exceed the maximum LTV/CLTV guidelines for the program.
  • Kyle | | 21 Nov 2013, 11:47 AM Agree 0
    Hi i have a question if i cashed out on a my primary residence and obtained funds from that property to purchase an investment all cash. Do i need to pay back the cashout refinance with these proceeds?
  • Nicole | | 19 Feb 2014, 06:38 PM Agree 0
    What is the bank protecting themselves from with this rule about gift funds, "Gift funds used to purchase the property may not be reimbursed with proceeds of the new mortgage mortgage."????
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