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Mortgage News Matters

Is Delayed Financing Right for You?

woman looking at financial papers

What is Delayed Financing?

Delayed financing is when a buyer pays for their home upfront with cash, and then immediately obtains a mortgage after the home is purchased.

What are its advantages?

The biggest advantage of delayed financing is the power of paying cash. A cash offer provides buyers with a competitive edge and allows them to stand out in a seller’s market, much like the one we find ourselves in today.

This method allows the buyer to make an enticing all-cash offer, then immediately puts the money right back into their pockets with a cash-out refinance.

What are the restrictions?

  • The amount of the mortgage loan obtained cannot be greater than the amount of the purchase price, closing costs, prepaid fees, and points, combined.
  • Applicants must have proof of cash purchase.
  • Applicants must provide proof of the initial source of cash used for the purchase of the home.
  • Applicants cannot apply for delayed financing with a home they purchased from someone they have a personal relationship with.
  • If funds are provided from a third party, applicants must provide a gift letter.
  • If applicants were provided a gift fund for the purchase of the home, they cannot give the cash from the cash-out refinance back to the donor.
  • The property must be free from any liens.

To learn more about delayed financing and if it is right for you – contact a VanDyk Loan Originator today!

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Mortgage News Matters

The Housing Market is Cooling Down – What Does This Mean for Homebuyers?

animated houses in a line

It’s no secret that the housing market has experienced drastic changes since the start of 2020. After mortgage rates dropped significantly and demand raised substantially, median home prices were at an all-time high by the end of the year.

However, this trend looks like it’s going to be changing – and very soon. Currently, the number of homes for sale is up 30%, since it’s lowest point this past spring.


Some industry experts agree that a combination of regular seasonal market changes and pushback from homebuyers to continue paying such high prices has contributed to the influx of homes on the market. However, another reason could be that sellers are finally ready to sell, as the pandemic seems to have become more manageable.

With this, it is important to note that even more inventory is expected to enter the market as the mortgage forbearance program – or CARES Act – that was passed in late March of 2020, will begin coming to an end on September 30th, 2021. This program, which has allowed millions of homeowners to pause mortgage payments, has been a lifeline for many. And its end means that those who will stop receiving support may have no other option than to sell.

With 1.7 borrowers enrolled in the program, we can be sure that we will see a significant increase in homes for sale – but not all at once, and not right away.

The program is set to end in phases over several months, with the majority of borrowers being dropped at the end of September and the start of October.

This change is expected to be drastic, as Zillow estimates that 25% of the 1.7 million borrowers that are still in forbearance will likely list their home for sale, which accounts for 211,700 homes to enter the market in the next 2 months.

It is important to note that this influx in homes for sale does not mean that we should expect a housing crash, rather it will continue to push the market forward paired with the continuation of low mortgage rates.

This is great news for buyers looking to purchase a home and have been living in a seller’s market for the past 18 months.

More inventory = more opportunity to buy.

Categories
Mortgage News Matters

4 Benefits of Moving to a Villa

street view of a villa with palm trees outside

For homeowners who are looking to downsize from a home to a smaller property with less maintenance, one option they should consider is moving to a villa. In addition to being a fruitful investment property, villas provide considerable privacy in a niche living experience.

What is a Villa?

Villas are homes located in retirement communities or vacation properties. They are one-level residences that often include patios, balconies, or gardens. As a property located in a community, they typically come with amenities like pools, clubhouses, or gymnasiums.

What are the Benefits of moving to a Villa?

  1. Investment Property. Like with a townhome, when a buyer purchases a villa, they are also purchasing the plot of land the property is sitting on. As this land value increases overtime, so does the villa itself, making it an ideal investment opportunity.

  2. Privacy & Exclusivity. With no shared walls and no shared water supply, a villa provides a similar level of privacy and exclusivity, as with owning a home. It is also typical for a villa to come with a private open space, such as a balcony or patio, which offers additional security and seclusion.

  3. Freedom to design. Though each community comes with its own set of design guidelines, a villa provides much more freedom to design, compared to living in an apartment.

    In some communities, owners have the freedom to remodel and renovate existing rooms, or even create new additions, because they do not have to worry about answering to a housing society or neighbors with shared walls. Check with your community first, to see what your options are.

  4. Amenities. Like condominiums, villas provide exclusive amenities for all their residents. From 24/7 maintenance to recreational spaces, there is truly something for everyone.

To learn more about downsizing from a home to a new property and take a look at your mortgage options, contact a Loan Originator today!

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Mortgage News Matters

4 Benefits of Downsizing to a Townhome

street view of multi level townhouse

Like a condominium, downsizing to a townhome is a great option for homeowners who are looking for less space and less maintenance in a property.

Though they do require additional costs, like homeowner’s insurance and association fee; Townhomes offer additional advantages, like more privacy and fewer restrictions. To help you decide whether a townhome is the best option for you, we’ve listed four of its major benefits.

What is a Townhouse?

A townhouse is a multilevel residence that is physically attached to a larger group of residences along a given street. Like a condo, a townhouse typically requires ownership. However, they differ in the fact that they are often sold with their plot of land. Which can make them more expensive.

What are the Benefits of Downsizing to a Townhome?

  1. Ownership. With townhomes, there are two different types of ownership: a (1) fee simple and (2) condominium. Condominium ownership means the buyer only owns the inside of the property and the exterior is maintained by the HOA and paid for through regular fees.

    A fee simple ownership, however, gives the buyer ownership of the plot of land the property is sitting on, including the front, side, and backyards. This provides for more freedom with the property, but also requires more maintenance from the owner.
  2. Lower HOA fees. Because they often require less maintenance and have fewer amenities, townhomes typically have fewer HOA fees, in comparison to condominiums. It is important to keep in mind that paying fewer HOA fees does not mean less maintenance for the owner. If maintenance is necessary on the exterior of the home, it is at the owner’s expense.
  3. More Privacy. A townhome typically offers more privacy, because unlike condos or apartments, they only have neighbors on either side of the home, rather than above and below. In addition, townhomes generally have their own yard separate from the publicly shared amenities.
  4. Rules and Regulations. Generally, townhomes have less rules and regulations compared to condominiums. This is beneficial to those who value freedom of expression and less restrictions.

Considering downsizing, but still aren’t sure whether a Townhome is for you? Check out our next blog on the benefits of moving to a Villa.