Comments on: can i buy a property all cash for a quicker close,but then finance the property to get back that cash?

By: Volner5

Volner5 — Sun, 06 Jun 2010 01:50:31 +0000

Well you would simply go to the bank after you purchase the home and ask for a mortgage loan. It would be very similar to a 2nd mortgage transaction. But you would still have to do a separate closing on the loan. So, I don’t understand your motivation for doing this.

By: Ed Atun

Ed Atun — Sat, 05 Jun 2010 22:42:29 +0000

I alway try to pay cash and close fast to get the best deals. I’m having trouble doing that today. The bank repo’s are taking 45 days to close the sale because they are so swamped. The cash and quick close has not been of any interest to them. They would rather sell it for a higher price and let the buyers get a loan.

By: I Buy And Sell Houses

I Buy And Sell Houses — Thu, 03 Jun 2010 18:02:10 +0000

As the other say, definitely yes. The problem, as one notes, is that it’ll be considered a cash-out refinance.

Work with a good mortgage broker, and you shouldn’t have any problems. Just make absolutely sure that the property you’re buying is a “great deal.” Make sure you check the comps. Always have an exit strategy.

Good luck.

By: Ryan Q

Ryan Q — Tue, 01 Jun 2010 04:13:45 +0000

The answer is absolutely you can pay cash and then finance after the fact. I work for a commercial bank and have clients that use HELOCs for that purpose all the time.

After making the purchase with cash from your HELOC, contact your local bank or mortgage broker. They will be able to get financing into place for you almost just as if you are purchasing it. However, because you already own the property it will be considered a cash out finance. It will also be considered an investment property for the purposes of underwriting. For both of those reasons the amount of lend-able equity you will be able to borrow against will be quite a bit lower than what you could expect to get for the purchase of a residence. Expect to only be able to get about 80% of the value of the property. So expect at least a 20% cash investment. Best bet is to consult your local bank/broker before making the purchase to get some ball park figures and a potential pre-approval.

By: Big Daddy

Big Daddy — Tue, 01 Jun 2010 00:48:24 +0000

The lender looks favorably on you doing this with an investment.
The lender looks favorably on refi it and worth more youll get fair amount back on refi it and the lender looks favorably on you doing this with an investment property plus.