Cash buyers are on the rise, but that doesn’t mean that mortgage brokers have to lose out on customers
Some housing markets are experiencing a significant increase in all-cash purchases, driven by record equity in homes as homeowners sell or refinance with cash out. One mortgage broker is using delayed financing to appeal to cash buyers who want to retain liquidity.
Cash buyers are on the rise, as homeowners sell and look to downsize, taking advantage of the built-up equity in their previous home. Others may consider a cash-out refinance to access cash for a new home purchase.
According to Bloomberg, Manhattan saw a 23% increase in Q2 in cash deals, reaching a record 69% of all transactions in the quarter.
Grant Hall (pictured top), senior loan pro and team lead at Rosegate Mortgage, has worked with all-cash buyers to utilize delayed financing, providing them with the benefits of a speedy cash closing and potential discounts while allowing them to retain their liquidity.
“If you cash out on your equity and you want to make an offer all cash and go ahead and close and buy a house as a cash buyer, you can always do what's called delayed financing,” Hall told Mortgage Professional America. “You close on it all cash. You get the house. You move in, turn around, and do a cash-out refinance and re-access that equity and cash back out as soon as the next day after you close, as long as you document that you actually bought the home with liquid funds.”
Benefits of a cash close
Hall said that the option to do delayed financing is another benefit of the record equity homeowners have accumulated in their homes.
“People are just buying with cash,” Hall said. “They're saying, “I’ll establish my financing after closing. I want to get the house for maybe a little bit of a discount. I want to close quickly. I want to go ahead and own it.’ They then establish their financing thereafter. And that's the perk of having all that equity from your prior sale.”
An example Hall gave of where an all-cash buyer might be able to get a good deal is finding a seller who is looking to move into a new school district before the start of the fall school year.
“It's such an interesting market where they could find a house, and the seller of that house really needs to sell,” he said. “They're under contract to buy their new house. Their kids are about to start school in the new school district. They have to sell their house, and they'll give it to you at a big discount. If you can say, ‘I'll buy cash. I'll close in 15 days.’
“And then, you wrapped up this house because of that at this huge discount, and then you can do that delayed financing strategy as soon as the next day, as long as you prep it correctly up front.”
Working with a broker early
Mortgage brokers should be a part of the plan early for all-cash buyers. Before a buyer goes and closes on a house, the broker should be in the loop.
“If you think that that's going to be a strategy in the cards, you're not going to go buy that house in cash, and that's it, you're done with it,” Hall said. “You can get with the broker or an originator upfront. Tell them that strategy. And any educated loan originator, the first thing that will come to mind is this delayed financing strategy, where they can prepare it for you.
Because the homebuyer is still taking out a mortgage with this strategy, the mortgage professional’s role will be to ensure the new financing still meets all the requirements as if the buyer had financed the purchase directly.
“They can make sure your bank accounts don't have a lot of large deposits in them from the account that you're using to buy this house,” Hall said. “Properly source your funds. Don't receive a big gift from somebody, because you'll have to end up paying that back. So, you can check all the boxes to position yourself in the best way.”
The other issue Hall brings up with these homebuyers who consider this strategy is the tax advantage involved in the post-purchase refinance.
Many homebuyers mistakenly believe a 20% down payment is required, says Jessica Lautz of NAR. She urges consulting mortgage professionals, as the average first-time buyer puts down much less.https://t.co/FX910ElX9I
— Mortgage Professional America Magazine (@MPAMagazineUS) July 3, 2025
“If you do a cash-out refinance, it's tax-free because you're not going to get taxed on technical debt,” he said. “So, people are going ahead and closing, and then they're re-accessing their cash right back out tax-free, and they're customizing their mortgage situation. It’s a really creative way that I know I've helped a good number of customers with, and a lot of people are taking advantage.
“Because it's an unprecedented point in time where people are sitting on so much home equity. But there are ways to be creative and access that equity in the most advantageous way I can think of.”
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