This story was published in the San Francisco Sunday Chronicle Real Estate Section

• Appraised value: $545,000.
• Borrowing amount: $300,000.
• Loan type: 30-year fixed rate.
• Rate: 3.375 percent.

Backstory:

Clients are empty nesters who recently sold their larger family home in San Anselmo. Before they could finish the sale of their previous home, they found a replacement home they loved in Novato but the seller would not wait for the previous home sale to close. Rather than risk losing the home to another bidder, they decided to pay all cash, because financing both homes was not possible.

Once settled in their new home with the previous home sold, the client approached a major bank for a home loan to replenish their savings and take advantage of today’s dramatically low fixed interest rates. The major bank denied their application despite excellent income and credit.

In late June of this year, Fannie Mae introduced the “Delayed Financing Exception” that eliminates the previous requirement to wait at least 6 months before getting cash out on a mortgage when the homeowner has paid all cash. However, not all lenders allow this exception, including the major bank where this client first applied. When they came to us, we directed these clients to a flexible wholesale lender who quickly embraced Fannie Mae’s delayed financing exception and their application was approved in only 5 days.