ReCasa Financial Blog

Almost a year ago, if you bought an investment property with cash, your cash was trapped – stuck in the purchase of the home for six months before any lender would provide financing for a mortgage .  This was largely driven by a Fannie Mae rule, called the Delayed Financing Rule, establishing a mandatory 6-month waiting period to prevent mortgage fraud and ease the pain of the housing crisis.  However, the agency has changed its tune and will now allow for real estate investors to pay cash for a home, then extract that cash immediately after acquisition via a mortgage loan .