🏡 How to Buy with Cash Now—and Get Reimbursed Later

A Strategic Look at the Delayed Financing Exception

By Brian Hunton, Certified Mortgage Planning Specialist (CMPS®)

💡 Why Pay Cash Upfront?

In today’s competitive market, cash buyers often win. Sellers love cash because it’s fast, clean, and low-risk. But what if you don’t want to tie up all that cash permanently?

That’s where a smart financing move comes in. It’s called the Delayed Financing Exception—a unique opportunity that allows you to make a cash purchase now and reimburse yourself later through a refinance. Think of it like hitting two goals at once: securing the home and protecting your liquidity.

🏆 3 Real-Life Reasons to Use This Strategy

Using this method can give you a major edge. Here’s when it really shines:

1. Win Bidding Wars with a Cash Offer

In hot markets, sellers often favor cash buyers. This strategy lets you compete with strength while still planning for financing later.

2. Buy First, Sell Later

Can’t qualify for two mortgages? Buy your next home with cash first, then refinance and use those funds however you choose.

3. Close Lightning Fast

Need to move quickly? Skip the upfront mortgage process. Buy with cash, then refinance within 6 months and access your funds again.

📜 What Are the Rules?

This isn’t just any refinance—it follows Fannie Mae’s Delayed Financing Exception guidelines. Here’s what you need to qualify:

• ✅ Arm’s Length Transaction: No deals with family or business partners.
• ✅ Clean Title: No other loans or liens can be tied to the property.
• ✅ Full Documentation: Show where the money came from. It can be cash, a HELOC on another property, or even a bridge loan—but it must be paper-trailed.
• ✅ Proof of Purchase: You’ll need a closing disclosure showing the cash purchase.
• ✅ No Gift Reimbursement: You can’t repay anyone who gifted you the cash.
• ✅ Loan Limits: Your new loan can’t be bigger than what you originally paid (plus closing costs and fees).
• ✅ Loan-to-Value Limits: Based on the current appraised value—not the purchase price.

🔎 What Makes This a CMPS® Strategy?

A Certified Mortgage Planning Specialist® looks beyond rates and products. We focus on wealth-building strategies that support your long-term goals.

Using delayed financing the right way can help:

• 📈 Keep your net worth liquid
• 💼 Preserve investment opportunities
• 🧾 Maintain tax and cash flow flexibility (acquisition indebtedness is maintained)

When paired with a financial plan, this approach becomes more than a workaround—it becomes a tool in your financial toolbox.

📲 Your Next Step: Let’s Run the Numbers

This strategy isn’t right for everyone. But for some, it can change their entire approach to buying real estate. Let’s schedule a 20–30 minute strategy call. I’ll walk you through it, answer your questions, and help you figure out if it’s a good fit.

Buying smart today can mean more financial freedom tomorrow.

Let’s talk.