Delayed Financing – how to get cashout without waiting 6 months seasoning?

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What is a “Delayed Financing” (vs delayed financing)?

  • Delayed Financing (Defined Term) has more to do with avoiding normal Seasoning Requirements (6 months) when doing a Cash-Out Refi then really anything else.  It could be called “No Seasoning Cash-Out Refinancing”.  Basically Someone delays getting financing by first paying cash (or can be from a HELOC, or secure loan) and THEN decides to put financing on the property after COE but doesn’t want to wait the standard 6 months seasoning!

2 scenarios could happen-

  • Not realizing it Ahead-of-Time: Use your own cash to buy and then you decide to replenish cash and don’t want to wait the std 6 months seasoning requirement for CashOut.
  • Planning Ahead-of-Time: same concept above

Why would someone ever want to do Delayed Financing (what is the benefit)?

  • Avoid Seasoning Requirement for Cash-Out Refi
  • Want quick COE and save time by paying cash
  • Better negotiating position by offering to pay cash


  • Follow standard Cash-Out LTV & Cash-Out Interest Rates
  • New Appraisal Required
  • Money replenishes where money came from

Example for Delayed Financing

  • Bought Home For: $200,000
  • CCs/PPs: $5,000
  • Max Loan: $205,000
  • New Appraised Value = $230,000 x .80% LTV (for Primary) = $184,000 Max Loan
  • Like having put an original 8% down-payment

Alternate way to do delayed financing”. Example – Parent buying a home for child with cash and then child does R/T refinance to cashout parent. Requirements:

  • Parent would have to have basic standard loan with child (deed of trust etc…title company can really help) and then child would do normal R/T Refinance to pay Parent off
  • R/T Refinancing LTV and Interest Rate % would apply
  • New Appraisal would be required