What it is
Fannie Mae’s delayed financing exception allows a cash-out refinance soon after a cash purchase, without the usual seasoning.
Requirements
Documented source of the cash used, arm’s-length purchase and a settlement statement.
How buyers who paid cash can recover funds soon after purchase.
Limits
The new loan is capped by the original purchase price and costs.
What it is
Delayed financing is an exception in Fannie Mae's Selling Guide that lets a buyer who paid cash for a home take out a cash-out refinance soon after purchase, without waiting for the normal ownership seasoning period.
Timing
The refinance generally must close within six months of the purchase date, and the original purchase must have been an arm's-length transaction.
Documentation
Expect to show the settlement statement from the purchase, proof of where the cash came from, and that no mortgage financing was used. If borrowed funds paid for the home, they must be paid off with the new loan proceeds.
Loan amount
The new loan amount generally cannot exceed the original purchase price plus closing costs and other allowable items, and is also limited by the standard cash-out loan-to-value rules.
Title
The borrower must be on title. Specific rules apply when the home was bought by certain entities.
Why use it
Buyers sometimes pay cash to win a competitive offer and then recover funds through delayed financing.
Plan ahead
Talk to a lender before paying cash so you keep the paperwork needed.
General education only; confirm current rules with official sources and a licensed lender.
Sources
Sources checked 10/23/2026.