Real Estate Home Mortgages/delayed financing loan

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Question
Hi,

A short sale house that I made an all cash offer is now approved. I want to do a Delayed Financing loan once closed so I can get the cash to return to my parents. What I heard is that this type of loan is like doing a refinancing? Will this loan require an inspection of the house? Because the seller just disclosed that there are termite in house caused by the upstairs toilet leak. Do I need to do a termite clearance so later I can use this to get the loan?

Thanks,

Will

Answer
Congratulation!

I will answer your specific question. If you are going to do a refinance and the lender directs you to do an FHA refinance then you may need an inspection and proof that it was serviced. If you do the refinance not using FHA (product), which I would highly recommend trying to do first, then only if the appraiser should notice some evidence of termite activity, old or new, then he/she would most likely note it on the appraisal and then the underwriter, would then most likely request it be done.

On a personal note, if it were me, I would have the termite inspection done first and then go into a contract for services with the company. Most inspectors offer contract services for 6-12 months. This is a smart thing to protect your investment as I've seen what termites can do and it is not all that expensive to remedy. Also, when calling to find out prices you may want to ask if there is an initial inspection fee, which usually there is, and then you ask if you chose to go into a contract for services for 6 or 12 months, would they then credit the initial inspection fee to the 6 or 12 month contract.

You may save a few dollars!

P.S. I highly suggest avoiding an FHA refinance as to avoid PMI (Private mortgage insurance# or government FHA mortgage insurance as this could be pretty expensive. It is usually required on homes that do not have 20% equity in them. Another little stupid guideline you may run into even though you may be purchasing the home way under value and having a tremendous amount of equity already in the home, is the rule that will use the purchase price or appraised value, which ever is lower, to determine the maximum LTV #loan to value) you could refinance on the home that is being refinance. This is usually put on homes that are considering refinance within 12 months of the purchase date. Some lenders will require you to wait over 12 months (12 mth seasoning) to use the appraised value unless you can demonstrate you've actually put money physically into the home prior to the refinance.

Hope this answers your specific question.

Good luck!  
About Real Estate Home Mortgages
This topic answers questions related to purchasing a home, owning a home, home ownership, mortgage education, mortgage applications, and mortgage needs whether buying a first home or refinancing a current loan. Issues related to home ownership, home equity, mortgage education, refinacing options, home improvment finacing, first time home loans, home equity loans, vactation home loans, and mortgages for investment homes are dealt with here also. Though not the primary focus of this topic, Home Equity Lines of Credits (HELOCS), reverse mortgages, and calculating home equity may also be asked. If you do not see your home mortgae, home finacing, or home equity question answered in this area then please ask a question here

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Ron Giannamore

Expertise

Underwriting Processing, loan modifications, down payment, government loans, fannie mae, freddie mac, VA, USDA, real estate questions, closing cost questions, etc. 25 years experience

Experience

Over 25 years lending experience and support. Currently work with two Non-Profit organizations and sit on the board of a government funded HUD agency. Vast knowledge of lending, credit, credit support and education, and helping borrowers take the necessary actions in obtaining mortgage approval.

Education/Credentials
Non Profit Housing Counseling Agency Board memeber 4 plus years. HUD funded. Licensed Loan originator in multiple states; 25 plus years experience

Awards and Honors
Top Loan Originator Corporate Award;

Past/Present Clients
Over 6000 clients served over 25 year plus period

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