On June 28, FannieMae announced that their "Delayed Financing Exception" has been removed. Buyers can now get cash-out finaning with no waiting period after a no-financing purchase transaction under the following parameters (no exceptions will be granted):
The new loan amount is not 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 (subject to applicable Loan to Value guidelines).
1)The purchase transaction was an arms-length transaction.
2)The purchase transaction HUD-1 confirms that no mortgage financing was used to obtain the subject property.
3)The preliminary title search or report confirms no liens on the subject property.
4)The source of funds for the purchase transaction can be documented (bank statements, personal loan documents, HELOC on another property). Any loans used as the source for the purchase transaction will be required to be repaid on the new HUD-1.
So, if you are buying homes for cash, your world has opened up greatly for the FNMA world.
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Always Looking to Acquire Houses | Always Looking to Amaze Investors
On June 28, FannieMae announced that their "Delayed Financing Exception" has been removed. Buyers can now get cash-out finaning with no waiting period after a no-financing purchase transaction under the following parameters (no exceptions will be granted):
The new loan amount is not 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 (subject to applicable Loan to Value guidelines).
1)The purchase transaction was an arms-length transaction.
2)The purchase transaction HUD-1 confirms that no mortgage financing was used to obtain the subject property.
3)The preliminary title search or report confirms no liens on the subject property.
4)The source of funds for the purchase transaction can be documented (bank statements, personal loan documents, HELOC on another property). Any loans used as the source for the purchase transaction will be required to be repaid on the new HUD-1.
So, if you are buying homes for cash, your world has opened up greatly for the FNMA world.
Always Looking to Acquire Houses | Always Looking to Amaze Investors