Have you lost out on a home because the seller chose an all-cash offer over yours? It can be quite frustrating, but one of my lenders is now offering a solution, called the “cash compete” loan. This will allow you to offer all cash on a property you would like to purchase, and then turn around to refinance after you close. The significant advantage to this is that it allows you to be more competitive against other buyers. Here are some of the foremost requirements and expectations:
- You must contribute a minimum 5% of your own funds
- The max loan amount is limited to the county’s high balance loan limit. In high-cost Bay Area counties, this maximum is $970,800 for a 1-unit home
- Your intended occupancy for the property can be primary, vacation or investment
- The cost of this program is 1% of the cash (loan) provided, plus settlement fees
- You can close in as little as 10 days, and then once you have closed on the home, can turn around and refinance within 30 days of that closing
Do note that it is a requirement to get preapproved by the lender prior to making such an offer, which will also approve you for financing after close of escrow. Contact me with any questions about this program, or assistance with any other real estate financing needs.
