March 4th, 2014 4:17 PM by David K. Harrington
Simply put, you can purchase a property for CASH (some folks can) and then, you get a loan AFTER. The loans are treated like Purchase Loans so there is NO CASH out restrictions and you get the benefit of PURCHASE "loan to values."If you pay cash, in order to get "cash out" later, you need to wait 12 months from the date of closing. It's a wonderful strategy for those who used CASH to obtain the best price and close fast...to put their money to work again. It can be a wonderful financial strategy.