The Kristoff Team

Getting a loan after a cash contract

Getting a loan after a cash contract

Delayed Financing Exception

Did you pay cash for a home but then decide you wanted to get a loan? If so, don't worry, there are options for you.

Scenario 1: Closing has not yet happened

If you have a contract to purchase a home for cash, but you have not yet completed the transaction it may still be possible for you to obtain a loan at the same time as your purchase. You'll want to act quickly, especially if there is less than 3 weeks until your closing, but obtaining financing simultaneously with your purchase may be the best option for your finances and loan terms.

Scenario 2: Closing has already occurred

If you have already closed on your purchase by paying cash (no loan at all) then utilizing the Delayed Financing Exception is a great tool to reimburse yourself after closing. Typically, Fannie Mae, Freddie Mac, and other investors require a minimum of 6-months after closing before a buyer can pull cash out of the property. However, the Delayed Financing Exception is an exception to that rule, under certain circumstances, that allows a buyer to pull cash out within the first 6-months after purchasing the property.

The Delayed Financing Exception does have some important characteristics to remember:

  • The purchase must be an arms-length transaction (no sales between family members, business partners, etc.)
  • The sale must be documented with a settlement statement or closing disclosure
  • There can be no mortgage on the property at all. The purchase must have been made with all cash
  • The source of cash purchase funds must be documented and acceptable per the mortgage loan guidelines.
  • Gift funds cannot be reimbursed, only buyer's own funds


If you have more questions about how to get financing after securing a cash contract or after closing on a purchase transaction made with all cash then reach out to The Kristoff Team.

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