A buyer needs to purchase their next home before selling their current one but wants the competitive advantage of an all-cash offer. They use a margin loan against investment accounts or tap other liquid assets to fund the purchase, planning to refinance once their existing home sells and recover most of their cash.

Traditional cash-out refinances come with rate hits, typically 0.75% higher than purchase rates, and require seasoning periods (usually 6 months). Most buyers and agents don't realize there's a strategy that lets them pull cash back out within six months at purchase money pricing, not cash-out pricing.

Delayed financing allows a buyer who purchased with cash to refinance within six months and pull out up to 80% on a primary residence (or 75% on an investment property) while being priced like a purchase loan. Because the transaction is documented as an all cash purchase, there's no seasoning requirement and no rate increase. The buyer gets the clean offer advantage upfront and recovers their liquidity afterward, saving roughly 0.75% on the rate compared to a traditional cash-out refinance.

Buyers walk away with a completed purchase, their equity position established, and most of their cash returned to pay off bridge financing or redeploy elsewhere. It’s just like they purchased the home with 20% down up front, but takes away the headache of timing the sale of their current home. For higher net worth clients buying before selling, this creates a bridge strategy without the ongoing cost of expensive short term financing or the rate penalty of a traditional cash-out refi.

Delayed financing is ideal for anyone making an all-cash purchase who wants to recover liquidity quickly, whether that's a buyer bridging between homes, an investor scaling a portfolio, or someone using collateralized assets to fund a purchase temporarily.

Micah Johnson | Branch Manager & NonQM Specialist
Metro Atlanta • North Florida • Savannah • Hilton Head • Tennessee

Helping real estate agents close more deals with DSCR loans, bank statement mortgages, delayed financing, and NonQM solutions for self-employed clients and investors.

Questions about delayed financing or complex mortgage scenarios? Let's talk.