Refinance And Transer Deed
The tenant living in my rental property has lived there for a year and a half and would now like to purchase the property. Their lending company says they are processing the loan as a refinance. How does this work? Is it possible?
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I am not a mortgage broker and definately not an expert on mortgages but I do read various forums for information. On the mortgage forum at creditboards it has been stated repeatedly that a tenant purchasing a property with over one years rent checks can do it as a refinance. Pretty much the basis of lease-option as well where the lessee will "refinance" the purchase after a year ....
Thanks for those comments. The broker did mention that he will handle this like a lease option since the tenant has been there for over a year.
This is a new concept for me and I just wanted to run it by the experts!
Which lender is doing this in MD?
Update.
Finally got that deal closed. The broker was getting creative as some of you suggested. The day of the closing, the underwriting department actually though this was a refi. The broker admitted that he got this loan pushed through basically as a favor.