Financing after paying cash

Financing after paying cash

Does anyone know how hard it is to finance an investment property after paying cash. I have a buyer that has cash for deals but doesn't want his cash tied up for years if he can refinance/get a mortgage. Can someone please explain to me what exactly his options are after he pays cash for a deal? Thank you very much!



"If God is for us, who can ever be against us?" Romans 8:31 NLT

Cash out

In the past when lending was lax it was easy to obtain a loan after paying cash. Most lenders would give 80% of appraised value. This was a wonderful deal for many investors that would get paid to buy homes! They would over leverage the home and if things went wrong bail out on the deal! This is one reason why we are in the mess we are in today. Lenders have gotten smarter, and some have actually went back to basics. Instead of a lock-step yes to a deal because I have a high credit score they are looking into experience, track record, and trying to build a relationship.

I often go to build new relationships with banks. Finding the different lenders and asking several questions about their common practices in lending will go a long way! Find out what all the different banks in the area require towards seasoning and LTV. I hope that this information helps!


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Agree'd He needs to find a

Agree'd He needs to find a lender that will work with him with the seasoning issues. Needs to do his homework on this one and find a small bank that does in house loans and is not writing loans to fanny and freddie guide lines.

I am currently working on this myself.
good luck

Municipal Credit Unions

are good with these i've heard

If you're a vet, look at Navy Federal Credit Union