Cash Close Question

CaptnCarl

Joined: Jun 27, 2017

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10:31a, 1/30/20

AG

Question for all you real estate gurus:

Is it common or even possible to close on a house with cash, then turn around and get a mortgage on the house to get some of your cash back out of it? Would most mortgage lenders go for this or snuff their nose at this?

SteveBott

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10:36a, 1/30/20

AG

Yes you can do that. Lots of variables on how much and rate. Figure 80% of purchase price unless you wait 6 months and get a new appraisal

jja79

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1:01p, 1/30/20

AG

Is there a reason not to get a purchase money mortgage? Terms would be better than a cash out loan.

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Diggity

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1:30p, 1/30/20

AG

I heard about people doing this in super hot neighborhoods a few years ago. They would lose out to cash offers so the strategy was to go ahead and pay cash, then finance later.

Can't imagine any other reason to do it.

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SteveBott

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1:37p, 1/30/20

AG

JJ is correct purchase money is cheaper

CaptnCarl

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2:03p, 1/30/20

AG

Diggity - you're on track. Thanks for the info guys.

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DannyDuberstein

Joined: Feb 20, 2012

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8:54a, 1/31/20

AG

I'm sure you are already doing this, but make sure you look into the tax implications of wherever you plan to pull your cash together from.

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E

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10:14a, 1/31/20

AG

When I got my house at the end of 2013, my father bought it in cash and I got a mortgage shortly after some remodeling to pay him back and get his name taken off the home. I believe it was a Texas Cash-Out loan.