Loans · Fannie Mae Selling GuideDelayed financing: getting your cash back after buying a home with cash

A Fannie Mae cash-out refinance normally requires at least one borrower to have been on title for six months before the new loan is disbursed (Selling Guide B2-1.3-03). The delayed financing exception lets a buyer who paid cash refinance sooner – within six months of the purchase – if every requirement is met: the purchase was an arm's-length transaction; the borrower bought as a natural person, an eligible revocable or land trust, or an LLC or partnership the borrowers own 100%; the purchase settlement statement confirms no mortgage financing was used; the preliminary title report shows no liens; and the source of the purchase funds is documented, for example with bank statements, personal loan documents or a HELOC on another property. If the money came from an unsecured loan or a loan secured by other property, the cash-out proceeds must pay off or pay down that loan, and gift funds used to buy can't be reimbursed from the new loan. The new loan can be no more than the documented initial investment plus the new loan's closing costs, prepaid fees and points, within the cash-out LTV limits for the current appraised value, and cash-out pricing applies. Separately, an inherited property or one awarded in a divorce has no six-month wait.