How to Use Delayed Financing to Buy a Home
Sellers are more inclined to accept offers from cash buyers than financing-backed buyers because cash transactions are easier and faster. Without any need to do paperwork, a seller can close on his home without worrying about finalizing the mortgage of the buyer. While this is a perfectly understandable preference on the part of the home seller, more and more financing-backed buyers are finding it difficult to compete in the market and find a home they could purchase through financing. Experts now recommend a solution that can end this war between cash buyers and financed buyers: delayed financing.
The idea of delayed financing requires a home buyer to be creative in thinking of ways on coming up with the cash to buy the home upfront. While this may be a very difficult, if not impossible, task, some buyers manage to push through and eventually buy the home of their choice via delayed financing. Some people use their savings and retirement funds; others make personal loans from family and friends. When the cash needed is at hand, they offer to buy a home in cash.
After transferring the ownership of the home, the next step is for the home buyer to apply for a personal loan. One option is to make use of a program from Fannie Mae which allows buyers to get a cash-out refinance; another option is to apply for a non-agency jumbo mortgage that follows a different set of rules from the ones normally followed in a traditional mortgage. More advice on delayed financing can be accessed from the article from which this post was based. For more home buying advice, you can also check out our blog here.