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$100 of HOA Dues = $20,000 Smaller Loan; Delayed Financing

A couple of quick reminders:

“Delayed Financing:” Buyers paying cash for properties can recoup that cash with a “cash out” refinancing immediately after they buy. The new loan will be limited to 75% loan-to-value and to the borrower’s actual cash investment (if the buyer uses “gift funds” to buy the house, “delayed financing” is not allowed for 6 months).

HOA Dues can significantly affect a borrower’s qualifying limits. A good rule of thumb in this rate environment is that every $100 in HOA dues shaves about $20,000 from a buyer’s maximum approval.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646