The purchase transaction was an arms-length transaction.
The purchase transaction is documented by the HUD-1, which confirms that no mortgage financing was used to obtain the subject property. The preliminary title search or report must also confirm no liens on the subject property.
The source of funds for the purchase transaction can be documented (bank statements, personal loan documents, HELOC on another property). Any loans used as the source for the purchase transaction will be required to be repaid on the new HUD-1.
All other cash-out refinance eligibility requirements are met and cash-out pricing is applied.
In addition, the multiple financed property policy is being updated to allow cash-out refinances that meet the delayed financing exception.
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