How Soon Can I Refinance After Paying Cash for My Home?

After buying a home with cash, Delayed Financing lets you quickly do a cash-out refinance as soon as the next day, or up to six months after closing, to recoup the funds.

It’s a great program for buyers who:

• Have the available funds to pay cash for a home.
• Want to avoid the bidding wars common in a competitive market.
• Who have loan source for the funds that needs to be quickly paid back, such as a retirement or other investment account.

This Delayed Financing program is available for primary and secondary homes, investment properties, and one- or multi-unit properties. Borrowers with credit scores as low as 620 are also eligible.

There are important guidelines that must be followed with this program. The transaction must be documented by a settlement statement showing no mortgage financing was used to obtain property. Title search must show no existing liens on the property. Source of funds for the purchase must be documented (gift funds may not reimbursed). The new mortgage may not exceed the documented purchase price. Original purchase must have been arm’s length. Cash out refinance eligibility requirements and pricing apply. Other restrictions may apply as well.

• Contact your loan servicer and ask that the PMI be removed.
• Refinance your loan with NOVA, with no closing costs.

With refinancing, in addition to removing the PMI, you may be able to lower your interest rate or get a shorter term, both of which can save you a significant amount of money over the life of your loan. An additional option, if you have the available funds, is to make a single lump sum payment toward your principal to reduce to your LTV to 78% so it is automatically removed.

The Program information shown is for informational/educational purposes only and does not represent a commitment to lend or extend credit. Other terms and conditions may apply. Contact your Loan Officer for more details.